The "Farmers Insurance "News-Alert" website is dedicated to providing the consumer and general public with detailed information concerning the Farmers Insurance Group. This includes fraud reports, consumer complaints, lawsuit's and other legal actions taken against this company. All information contained herein is for educational purposes only. Original sources, when known are sited.
|Thursday, November 3, 1994
Farmers Maintains New-Policy Freeze in Battle With
By: From Times Staff and Wire Reports
The head of Farmers Insurance Group's
British parent company said Wednesday that Farmers will
not lift its current freeze on writing new homeowners and
earthquake insurance in California "until we get our
way"--that is, until Farmers is allowed to raise its
earthquake policy deductibles to 25%.
Without the increase, Broughton said, "there's no way we're going to be writing any new business" in California.
Citing industrywide losses of $10 billion or more from the Jan. 17 Northridge earthquake, nearly all of the state's largest insurers have restricted their writings of homeowners and earthquake coverage.
Broughton, in a separate interview Wednesday with Dow Jones Investor Network, said he thinks Farmers' current quake loss estimate of $1.35 billion "is actually slightly optimistic because we are now seeing quite a few reopenings of what we thought were closed cases."
A Farmers spokesman said the estimate is being
reviewed as claims are paid and that there is a chance it
could be revised upward.
Copyright (c) 1994 Times Mirror Company
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