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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.

 

STATE SUES FIRM ON AUTO INSURANCE

Associated Press Sunday, March 4, 1990

California's attorney general has sued Farmers Insurance Group, claiming the state's second-largest insurance company has defied Proposition 103, the voter-approved insurance reform law.

''Farmers has attempted to make a mockery of the law either by shunting some good-driver applicants into a subsidiary called Mid-Century, which does offer new policies but only at outrageous prices, or by outright refusal to insure them at all," Attorney General John Van de Kamp said.

The lawsuit was filed Friday, the day that six other companies were ordered by Insurance Commissioner Roxani Gillespie to issue good-driver discount policies as mandated by Proposition 103.

Notices of the insurance commissioner's findings were sent to Allstate Insurance Co., Chicago Insurance Co. and Interstate Indemnity, California Casualty Insurance Co., Cal-American Insurance Co. and Clarendon National Insurance Co.

Proposition 103, approved by voters in 1988, requires auto insurance rates based primarily on a driver's safety record, experience and miles driven. Drivers with no more than one moving violation in three years are to be guaranteed lower rates.

Van de Kamp's lawsuit, filed in Superior Court, seeks a preliminary injunction to force Farmers to comply with a good- driver provision in Proposition 103 that states such drivers can get 20 percent discounts.

Van de Kamp, a Democratic gubernatorial candidate, said he also is seeking $2,500 in fines for each good driver refused insurance policies at the discount rate.

A spokesman for the Los Angeles-based insurance company said Farmers has been wrongly accused.

''Farmers is absolutely complying with the good-driver discount and filed documents with the commissioner's office a couple of weeks ago showing its whole marketing plan for marketing good-driver discounts," said attorney Leonard Venger, who represents the company on Proposition 103 matters.

 

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