A Texas district court judge refused to allow a sweetheart deal between Farmers Insurance and the State of Texas to move forward today. At a hearing in Judge Scott Jenkins’ court, lawyers for Farmer Insurance and Attorney General Greg Abbott’s office argued in favor of a deal that allows the insurance giant to avoid paying interest on millions of dollars in excessive premiums.
“This was a sweetheart deal in 2002 and it is still a sweetheart deal,” said Alex Winslow, executive director of the citizen advocacy group Texas Watch.
In 2002, Greg Abbott, then a candidate for Attorney General speaking about Farmers’ nefarious practices, said he would hold “accountable any company that bilks consumers out of their hard earned money.”
“That was then, this is now,” said Winslow. “Today, Greg Abbott and Farmers Insurance are linked arm-in-arm to push this bad deal through. Why isn’t Greg Abbott keeping his promise to Texas policyholders? He should put Texas homeowners first by forcing Farmers to pay back every penny it owes plus interest.” (more…)