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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.

 

Farmers Subsidiary Fined for Requiring Tax Returns During Claims Process

Nov. 7, 2000

Fire Insurance Exchange's practice of asking claimants for income tax returns has been declared illegal under the state's insurance laws by the Texas Department of Insurance.

As a result, the subsidiary of Farmers Insurance Co. has been ordered to stop asking claimants to produce income tax returns in connection with a claim except in cases where the claimant is ordered to produce these documents by a court, the claim involves a fire loss or involves a loss of profits or income. The company was also ordered to reopen all cases within the last two years involving a claim denied because a resident refused to produce income tax returns when there was not a fire, loss of profit or income or it was not ordered by a court.

The company has 30 days to notify all affected claimants that their case has been reopened, and 90 days in which to provide TDI with the names of all claimants notified. Fire Insurance Exchange must also pay a $20,000 fine.

 

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