Overturning of State Farm Refunds Upheld

State Farm’s policy-holders will not get state-proposed refunds of about 3.9% on their 1989 premiums for auto, homeowners and other property and casualty insurance. The California Supreme Court denied review Wednesday of lower-court rulings overturning the refunds, which had been ordered by state Insurance Commissioner Chuck Quackenbush. A lawyer for Quackenbush said the case sets a precedent that could endanger other refunds. The case involved Proposition 103, the 1988 initiative that authorized state regulation of many types of insurance and required one-time rate rollbacks for 1989. The rollbacks have been the subject of protracted legal battles.