Suit Over Farmers 'Short Rate' Policy Revived

Law360, Chicago (December 21, 2012, 5:24 PM EST) -- A California appeals court on Thursday restored part of a putative class action accusing Farmers Group Inc. of shortchanging customers on refunds when they cancel policies early, finding a lower court improperly axed claims over the insurer's alleged failure to explain "short rates" in its policies.

The plaintiffs, two purchasers of homeowners insurance, allege they canceled their Farmers policies before the expiration of their one-year policy terms, for which they paid in full, and expected to receive a pro-rata refund of the policy premiums that was...
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