State Farm could owe customers $0 to $1 billion - KCBD NewsChannel 11 Lubbock

6/15/09

State Farm could owe customers $0 to $1 billion

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AUSTIN, Texas (AP) - Pick a dollar amount between zero and 1 billion. Depending on who you ask, that's what State Farm Insurance owes its Texas customers for overcharging on homeowner policies dating to 2003.

The Office of Public Insurance Counsel, the state's consumer advocate for insurance, says in documents filed this month that Texas' largest property insurers owes policyholders $785 million plus interest, or nearly $1 billion.

The Texas Department of Insurance calculates the overcharges at about $250 million, plus nearly $100 million more in interest.

State Farm says it owes customers nothing and that it didn't overcharge.

State Insurance Commissioner Mike Geeslin will decide who is right when he rules this summer.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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