AUSTIN, Texas -- Texas’ insurance commissioner is ordering State Farm Lloyds to pay home insurance policyholders $310 million in refunds and interest for overcharges going back as far as 2003. Insurance Commissioner Mike Geeslin says in a statement Monday that the order completes reforms started six years ago by Texas lawmakers. State Farm spokesman Kevin Davis says the company’s rates have always been fair, adding the ruling "threatens the free market place." It has 10 days to appeal.
The order stems from a 6-year-old case in which regulators ordered the company to cut its rates 12 percent.
State Farm is Texas’ largest home insurer with about 1.2 million policyholders.
