LOS ANGELES--(BUSINESS WIRE)--For the first time in decades, California consumers who were overcharged for homeowners insurance will receive refunds, the Zohar Law Firm announced. The largest insurance carrier in the country, State Farm, was ordered on November 7, 2016 by California Insurance Commissioner Dave Jones to refund to its 1.7 million California policyholders in excess of $100 million.
The refund was the product of a lengthy evidentiary hearing that took place under Prop 103—California’s unique law that regulates many types of insurance. The lead trial counsel on behalf of the 1.7 million consumers, Todd Foreman and Daniel Y. Zohar of the Zohar Law Firm in Los Angeles—cross-examined State Farm executives and expert witnesses, providing the foundation for the Commissioner’s ruling. In addition to the refunds, State Farm will have to reduce its statewide homeowners insurance rates by an average of 7%, saving consumers close to $150 million per year compared to what State Farm sought to charge.
Said Todd Foreman, “State Farm used their virtually unlimited resources, including an army of lawyers and experts, to try to push through a massive rate hike. But today, the facts and the law prevailed, and consumers will be protected.”
The decision was designated by the Commissioner as being precedential, meaning that under California law, it “contains a significant legal or policy determination of general application that is likely to recur.” All three prior approval decisions designated as precedential since Prop 103 passed in 1988 were handled by the Zohar Law Firm.
Click here to see the Commissioner’s order: CDI Ruling 11/7/16
About Zohar Law Firm, P.C.
The Zohar Law Firm is one of the premier business and entertainment litigation firms in California. (See www.zoharlawfirm.com) Over the years, it has also set aside thousands of hours to help the public, working with consumer non-profits to achieve landmark successes in insurance rate hearings such as this and saving consumers hundreds of millions of dollars.
