STATE FARM ISSUED REFUNDS ORDER
HOUSTON (Houston Chronicle) - State Farm Lloyds has been ordered to issue $310 million in refunds to home insurance policyholders.
Insurance Commissioner Mike Geeslin said this completes insurance reforms that began in 2003 following years of record rate increases. Regulators had then ordered the company to cut its rates 12 percent.
The refund amounts to 6.2 percent of premiums for those the company insured from September 2003 to August 2004, and 3.4 percent of premium for each year of coverage for customers insured from September 2004 to July 2008.
State Farm, Texas' largest home insurer with about 1.2 million policyholders, has ten days to appeal the order.
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