Texas keeps eye on State Farm

The Texas Department of Insurance says State Farm must continue to get prior approval before changing rates for homeowners. But State Farm spokeswoman Sophie Harbert says its rates are "competitive, fair and justified" and haven't changed since June of 2003. She says the company is still evaluating this week's state order. So State Farm becomes the only insurance company in Texas that must get prior approval from regulators on what it charges for homeowners policies. Texas previously made the same prior approval requirement of all homeowner policy rates. But as of December first, regulators moved companies to a file-and-use system, which allows them to charge new rates while they're under review. State Farm by January 14th must file its rates with the state. An insurance department spokesman says State Farm is overcharging.