Texas Farmers Insurance Class Action Settlement

The State of Texas and Farmers Group Inc. have reached a class action lawsuit settlement stemming over allegations that the insurance company charged excessive rates for homeowner policies between 1999 and 2003.

The Texas Farmers insurance class action lawsuit claimed that the company used deceptive practices when determining fees, discounts and policy offerings. The State of Texas further alleged that Farmers improperly used credit scores and risk assessments.

According to the Farmers class action lawsuit, the company also failed to provide adequate notices that the information on policyholders’ credit reports may have impacted their premiums or policy placement. The State of Texas claims that the Farmers insurance group used anticompetitive practices in the sale and marketing of homeowners and automotive insurance policies.

Texas Farmers Group denies all of these claims but has agreed to the class action settlement in order to avoid further litigation.

The Farmers class action settlement will include Texas homeowners or automobile insurance policyholders who had certain types of insurance policies between Oct. 1, 1999 and Feb.  28, 2003.

UPDATE: The court overruled all objections and signed final approval of the settlement agreement on Feb. 5, 2016.

Who’s Eligible

The Farmers insurance class action settlement includes three types of Classes and Class Members may be eligible for more than one. Class Members include Texas Farmers Insurance policyholders who were covered under the following different Classes:

Rate Class – Includes homeowners who had a Farmers policy between Dec. 28, 2001 and Nov. 10, 2002. The Farmers class action settlement Rate Class also includes Class Members who received a notice at any time after Nov. 14, 2001 that their HO-B policy would not be renewed.

Discount Class – Includes homeowners who had a Farmers policy and according to the defendants’ records, are eligible to receive recalculated discounts on premiums from Nov. 16, 2000 through Dec. 10, 2002.

Credit Usage Notice Class – Includes Farmers homeowners and automobile insurance customers who were provided or should have been provided a Credit Usage Notice from Oct. 1, 1999 through Feb. 28, 2003.

Potential Award

Varies.

Farmers has agreed to pay a total of $84 million divided among all Class Members in the Rate and Discount Class.

The insurance class action lawsuit settlement will also pay eligible Class Members in the Credit Usage Notice Class a cash payment of $35.

Proof of Purchase

The Texas Farmers insurance class action lawsuit settlement will automatically send payments to Class Members in the Rate or Discount Class as soon as the settlement agreement has its final approval.

Class Members in the Credit Usage Notice Class must submit a Claim Form in order to receive a cash payment of $35.

Claim Form

CLICK HERE TO REQUEST A CLAIM FORM

Claim Form Deadline

04/01/2016

Case Name

State of Texas v. Farmers Group, Inc. Case No. GV202501 in the District Court of Travis County, Texas

Final Hearing

02/01/2016

Settlement Website

www.TexasFarmersSettlement.com

Claims Administrator

Texas Farmers Settlement
P.O. Box 1903
Faribault, MN 55021-1939
888-222-0691

Class Counsel

Office of the Attorney General, Texas
CONSUMER PROTECTION DIVISION

Defense Counsel

M. Scott Incerto
NORTON ROSE FULBRIGHT US LLP