Posted On: June 29, 2009, 11:38 am CDT

Posted By: jay

I know that this is years laters but no Farmers didn't get run out of Texas, Rick Perry and his band of hence men were trying to make a political statement during an election year and needed a scape good to make him look good. I am an ex-Farmers Agent and I was privey to what really happened behind the scenes. Rick Perry signed a Cease and Desist Order against Farmers Insurance, had Farmers sold or renewed a policy they would have been fined $25,000 per policy, Farmers was left no choice but to leave Texas yet Perry and his brave henchmen spinned this against Farmers to make it appear that if Farmers didn't get their way Farmers was leaving Texas. Farmers did not fight back or tell the public the truth about what really happened, it was on the mold issue, Farmers went to TDI and requested that they consider mold as an additional Peril rates may have gone up about $100 per policy. Farmers had 12 mold claims at the cost of about $80,000 per claim. The State of Texas said no that the Insurance companies would have to pay claims for an unnamed peril. The Insurance companies lost a good share of their reserves due to this. TDI thought that they were protecting the consumer and found out that it only hurt the consumer more. Say all you want about Farmers Insurance but in this case Farmers got the bad end of the stick by trying to protect the consumer, the other Insurance companies stood by and watched and let Farmers fight their battle.