State Farm Ordered To Refund California Homeowners $104M

Acting upon a petition from the Consumer Federation of California (CFC), California Insurance Commissioner Dave Jones has ordered State Farm to refund homeowners insurance policyholders $104 million and reduce rates going forward. 1.7 million policyholders will receive refund checks. Consumer Watchdog also intervened at the California Department of Insurance, seeking a rate cut. "This is a big win for California policyholders whom State Farm overcharged," stated Richard Holober, Consumer Federation of California Executive Director. "It demonstrates the effectiveness of our voter-approved insurance law to keep rates fair and hold insurers accountable."