Office of the Attorney General News Release Archive

Monday, August 5, 2002

ATTORNEY GENERAL JOHN CORNYN ANNOUNCES LAWSUIT AGAINST MAJOR INSURANCE COMPANIES

AUSTIN - Texas Attorney General John Cornyn today announced he has filed suit against Farmers Group, Inc., Farmers Underwriters Association, Fire Underwriters Association, Farmers Insurance Exchange and Fire Insurance Exchange for "deceptive, misleading, and discriminatory homeowners-insurance practices" that violate the Texas Insurance Code and the Deceptive Trade Practices Act.

The lawsuit says, "Farmers' illegal practices were discovered through an investigation initiated by the Attorney General's Consumer Protection Division and during an examination by the Texas Department of Insurance under TEX. INS. CODE art.1.15."

"In the legal action being filed today, we allege that Farmers Insurance has been deceptive and discriminatory, and they have hit Texas consumers in the two places where they are most sensitive and most secure... in their pocket books and in their homes," Cornyn said.

*Note: The lawsuit can be found at www.oag.state.tx.us (click on the "State of Texas v. Farmers Group, Inc." link)

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