Austin, TX (PRWEB) March 01, 2015
The Office of Public Insurance Counsel (OPIC) announced today that it has reached a settlement requiring State Farm Lloyds to refund $352.5 million in premium overcharges and interest to policyholders.
Public Counsel Deeia Beck stated, “OPIC is very pleased to settle this long-standing rate dispute with significant refunds to policyholders. We are particularly glad that OPIC’s legal arguments resulted in the inclusion of policyholders from September 2006 through July 2008 in the settlement. These policyholders will receive $119.1 million in refunds that they would not have otherwise obtained.” Beck also said, “While we argued for an even larger amount, at the end of the day it comes down to what is best for policyholders. We could have continued the litigation for years resulting in larger refunds, no refunds, or something in between. Given all of the considerations and risks involved, we concluded that a settlement at this time on our agreed terms was in the best interests of policyholders.”
Please see attached settlement agreement concerning State Farm Lloyds v. Rathgeber, No. 03 11-0322-CV, 2014 WL 5845181 (Tex. App.--Austin, Nov. 26, 2014, no pet. hist.)