Farmers operating units Farmers Insurance Exchange and Fire Insurance Exchange have filed suit against Texas Insurance Commissioner Jose Montemayor and the Texas Department of Insurance (TDI) in response to the issuance of an emergency cease and desist order against the company last month.
According to the lawsuit, the plaintiffs want to nullify the cease and desist order, as well as related disciplinary actions issued by the defendants, and also a judgment of permanent injunction against Montemayor and TDI to prevent them from affecting the exchanges’ ability to conduct business.
Farmers asserts that Montemayor and TDI’s issuance of the cease and desist order and disciplinary action exceeded the authority vested in them by the Texas Insurance Code. Furthermore, the lawsuit contends that the state insurance code exempts insurance exchanges from rate regulation, and that the commissioner has no authority to impose such regulations on the plaintiffs.
Topics Lawsuits Texas Agribusiness
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