California customers were charged excessive premiums for rental and home insurance policies by State Farm a judge ruled, recommending millions in refunds.
Consumer advocacy groups challenged State Farm’s proposed 7 percent rate increase, which the insurance giant said was needed to cover new risks from wildfires.
Administrative Law Judge John Larsen said that State Farm’s data showed no increase in wildfire losses and recommended the insurer cut its homeowners rates 5.4 percent, its renters rates 20.4 percent and its condominium rates 13.8 percent, retroactive to July 2015, according to the LA Times.
The refunds should amount to about $85 million for 1.7 million policyholders.
However, the recommendations released in early August must be approved by California Insurance Commissioner Dave Jones.
Jones has not indicated whether he will go along with them, so customers shouldn’t expect to see any refund money just yet.
Keep reading at LA Times.com.
