Travis County Court Approves $84.4 Million Settlement in Farmers Insurance Case–Texas Insurance Defense Law

AUSTIN – A Travis County district court has granted preliminary approval of a settlement with Farmers Insurance Group that will return $84.4 million to policyholders stemming from a 2002 rate case.

“I’m pleased with the court’s decision,” said Texas Insurance Commissioner David Mattax. “It’s time to return this money to policyholders, who have been waiting for more than a decade. These refunds, combined with the rate reductions Farmers agreed to in 2002, are excellent news for consumers.”

Mattax noted that the court’s original approval of the settlement in 2003 described the agreement as “an extraordinarily high percentage of recovery on the claims that were asserted.” The amended version adds an additional $10 million for consumers to account for the delays while the settlement was challenged in court.

Notices about the settlement will be mailed within 60 days to people who may be eligible for a refund.

Mattax also thanked the Texas Attorney General’s Office for its work representing the state in the long, complex case.


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Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

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