Farmers Insurance tries to block class action

Lawsuit alleges that the insurer engaged in discriminatory pricing practices

Farmers Insurance tries to block class action

Insurance News

By Allie Sanchez

Farmers Insurance has asked a Texas court to dismiss a class action lawsuit alleging that the company engaged in discriminatory practices and violated the state Insurance Code.

The complainants in the suit have alleged that the firm violated the Insurance Code’s unfair discrimination provision by providing essentially the same auto insurance product at differing prices to new and old policyholders.

Legal News Line reported that Charles Grigson and Robert Vale filed the class action suit with the US District Court for the Western District of Texas.

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In its motion to dismiss, Farmers did not dispute the allegations levelled by the plaintiffs against the company. However, these issues are moot, the motion further said, because state law requires insurance firms to file rates with the Commissioner of Insurance, and the firm has complied faithfully with these procedures.

“Thus, the Code provides a comprehensive, robust scheme for rate regulation, including a process for policyholders to contest rates that the Commissioner has allowed as neither excessive, inadequate, unreasonable, nor unfairly discriminatory,” the defendant’s legal representatives asserted in their motion.

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