Angry agents from Farmers Insurance Group confronted Insurance Commissioner Jose Montemayor during a recent public hearing on Texas Department of Insurance proposals designed to increase the availability of homeowners insurance when Farmers exits the homeowners market in November.
According to Associated Press reports Farmers agents believe that Montemayor’s actions against the company will force thousands out of business. Farmers claims it is losing money in the state’s homeowners market and announced it would stop renewing existing homeowners policies in November. It had previously announced a moratorium on writing new homeowners policies. Farmers took the action after a series of legal actions against the company that included a lawsuit filed by the state attorney general accusing Farmers of illegal business practices and a cease-and-desist order from Montemayor directing Farmers to stop what it called unfair pricing practices.
Farmers maintains it is operating under legal, fair and ethical standards.
The hearing was held to allow public comment on TDI proposals to expand Texas Windstorm Insurance Association coverage statewide and the initiation of the Fair Access to Insurance Requirements (FAIR) program. The FAIR program creates a homeowners insurance pool supported by residential property insurers in the state. Both initiatives are intended as last-resort homeowners insurance programs.
In private meetings held at the Capitol, state officials and Farmers are still trying to work out a deal whereby the company could remain active in the Texas homeowners market.
Topics Texas Agribusiness Homeowners
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