Ruling on appeals filed by State Farm Lloyds Insurance and Farmers Insurance Companies regarding ordered homeowners rate reductions, Texas Insurance Commissioner Jose Montemayor upheld the rate cuts ordered by the Texas Department of Insurance (TDI) on Aug. 8, 2003.
TDI had ordered homeowners insurance rate reductions in the amount of 12 percent for State Farm Lloyds Insurance and 17.5 percent for Farmers.
“After taking into consideration all of the evidence the companies presented at the hearings, it is my judgment that the conclusions regarding rate reductions reached by the Department were correct and accurate,” Montemayor said. “The rate reductions ordered by TDI for State Farm Lloyds and Farmers Insurance are affirmed.”
Beginning in June, the Texas Legislature required the Texas Department of Insurance to undertake rate reviews of every company offering homeowners insurance in Texas to determine if existing rates complied with rating standards. These rate reviews were completed on Aug. 8 for the top 32 company groups and on Sept. 9 for the remainder of the market. TDI concluded that homeowners rates were excessive for 29 of the 61 companies reviewed and ordered reductions. Of the 29 companies ordered to lower homeowners rates, 12 companies appealed.
Additionally, Montemayor issued a ruling on an appeal by Columbia Lloyds Insurance upholding the ordered rate reductions in that company’s fire and allied lines rates.
State Farm Lloyds, Farmers Insurance Company and Columbia Lloyds can appeal Commissioner Montemayor’s decision to state district court in Travis County.
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