Agents Sue Farmers Insurance Over Access to Data Network
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Agents for Farmers Insurance Group have sued the Los Angeles-based insurer for allegedly coercing them to buy computer systems at inflated prices.
Companion antitrust lawsuits filed last Thursday in U.S. District Court in Austin, Tex., contend that Farmers denies agents access to its computer information network unless they buy computer systems costing about $19,000. Similar equipment is available in the open market for $3,000 to $4,000, according to the lawsuits.
The Farmers network, which supplies information on prices, marketing and new products, is considered a valuable tool, said attorney Rod Bordelon of the Austin firm of Rentea & Whitehead, which represents the agents.
Farmers spokesman John Millen declined to discuss the suit beyond saying: “We were a bit surprised by it because the majority of our agents have been enthusiastic about getting new technology to serve their customers.”
One of the suits was filed by United Farmers Agent Assn., a trade group representing 16,000 Farmers agents nationwide. The other is a class-action suit brought by two agents from Houston on behalf of all Farmers agents individually, Bordelon said.
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