The State of Florida has ordered State Farm Florida to issue refunds totaling $120 million dollars to 100,000 current and former policyholders. In addition to ordering the credits or refunds to customer accounts, State Insurance Commissioner Kevin McCarty demanded that State Farm Florida pay a $1 million penalty to the state. The average payout per policyholder is $1,225. This affects 98,000 customers who carried hurricane coverage and were not notified about or failed to receive discounts for making their homes more resistant to wind damage. To receive the refund they don’t need to be current customers of State Farm Florida. A State Farm spokesman says the company discovered the problem, reported it to state regulators and agreed to the refunds and the credits. Nevertheless, this appears to be a victory for customers of the insurance giant and is good news.
Source: First Coast News
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