Hartford Agrees to Reduce Texas Homeowners Rates, Pay Refunds

Under agreements between the Texas Office of Public Insurance Counsel (OPIC), the Texas Department of Insurance, and two subsidiaries of the Hartford Financial Services Group, Texas consumers that purchase homeowner insurance from the Property and Casualty Co. of Hartford or the Hartford Lloyds Insurance Co. can expect to see a rate reduction.

The agreements were finalized June 30, 2010, the OPIC reported.

Public Counsel, Deeia Beck, stated in an announcement released by her office that OPIC “felt that the rate increases these companies implemented last year were too high. The staff at the Department agreed, and we were able to work something out to get the rates reduced and return the overcharges to the policyholders.”

The Property and Casualty Co. of Hartford agreed to reduce its rates by 10 percent. Similarly, the Hartford Lloyds Insurance Co. agreed to reduce its rates by 3.1 percent. The companies will make new rate filings by July 30, 2010, to implement these reductions.

In addition to a rate reduction, policyholders will also receive refunds for the overcharges the companies collected since Jan. 29, 2010, plus interest. Policyholders can expect a refund from the company by Dec. 30, 2010.

Source: OPIC