According to a news bulletin made by the Insurance Journal, Farmers Insurance Company, the Texas Department of Insurance (TDI), aand the Office of Public Insurance Counsel (OPIC) have resolved a dispute over a homeowners insurance rate increase filed by Farmers last summer.
In their request, filed in June, 2009, Farmers Insurance asked for a 9.8 rate increase for its Texas Family Home Policy, which became effective on June 16th. Almost immediately, OPIC filed an objection to the increase, and in September the company was notified by TDI that the “rates contained in the filing to be excessive and unfairly discriminatory.”
A commissioner’s order, dated January 11, 2010, indicated that all parties have agreed that Farmers will reduce the overall rate increase by 5.3 percent with a three-fold plan that includes:
- reducing main peril base rates by 2.7%
- increasing the auto and home discount applicable main perils from 15% to 20%
- reducing the water peril base rates by 11.6%
The accepted changes are to become effective on March 16th, 2010, and will remain in effect for one year, as long as there are no “extraordinary unforseen circumstances,” like natural disasters, which might cause the company negative effects.
The commissioner’s order includes stipulations that the order does not mean that Farmers admits to any violations of the Texas Insurance Code, nor does it constitute an approval by TDI, “…of the assumptions or methodologies used by Farmers in any rate filing.”
It is not known whether or not Farmers auto insurance customers should also expect a rate increase, or even if one has been requested.