They allegedly deceived homeowners by reducing coverage and raising premiums, and now Farmer's Insurance will have to answer for it. A lawsuit was filed on Monday by the state of Texas. Governor Rick Perry and State Attorney General John Cornyn made the announcement in Houston.
"Home ownership is at the heart of the American dream. And I will not allow companies like Farmers to destroy that American dream in the state of Texas, said Governor Rick Perry.
The lawsuit also claims the Los Angeles based insurance company is improperly charging Texans to cover catastrophes in other states.
"We will take you to court. We will ask the court to enter an injunction to stop, make you stop. And we will ask the court to reward civil penalties in order to punish to sort of conduct and send a message to others who violate the law and violate consumer's trust," said Texas Attorney General, John Cornyn.
A Farmers Insurance spokesperson says they have not violated any Texas laws, and calls the lawsuit political harassment in an election year. Governor Perry and Attorney General Cornyn are both Republicans on the November ballot. Perry faces Democrat Tony Sanchez and Cornyn takes on Democrat Ron Kirk in the U.S. Senate race.