Post: State Farm~Poster Child Of What Is Wrong...
Posted by Sharon on 4/15/10
"State Farm is the Poster Child for What is Wrong with the
To leading lawmakers and even some insurance industry
experts, State Farm hasn't exactly been like a good
neighbor in recent dealings with state regulators.
The state's largest property insurer shows no sign of
compromising on its marathon legal battle over the state's
ruling that it overcharged homeowners hundreds of millions
"I don't think any insurance company should be allowed to
get to the point where they are too big and powerful to be
regulated," said Alex Winslow of Texas Watch, a consumer
group active in insurance issues. He accused State Farm
of "taking advantage of the marketplace."
Public Insurance Counsel Deeia Beck noted that the company
has used similar tactics in Louisiana and in Florida, where
State Farm declared last year that it was going to pull out
of the state. It reversed course only after state
regulators agreed to let the company raise homeowner rates
nearly 15 percent and drop about 125,000 policies.
The state's public insurance counsel said last year that
the company owed nearly $1 billion in overcharges and
penalty interest. Geeslin offered to settle the case for
$310 million in refunds, but State Farm held firm that it
owed nothing. The case is back in court again.
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