Fight Over Insurance Rates To Be Reviewed By State Agency

AUSTIN (AP) – State Farm Insurance does not have to refund consumers some $650 million in alleged overcharges while its dispute with Texas regulators over homeowner rates is reviewed.

A state appeals court has ruled the insurer was denied its due process rights in a fight with the Texas Department of Insurance over homeowner rates.

The three-judge panel from the 3rd Texas Court of Appeals concluded that State Farm was held to an unfair standard in justifying its rates for homeowners insurance.

They sent the case back to state Insurance Commissioner Mike Geeslin for review using stricter standards.

The fight between State Farm and the Insurance Department began in 2003 when regulators ordered the company to lower its rates by 12 percent.

The Insurance Department found State Farm was overcharging Texas customers by that amount.