State Farm must pay $120 million to some 98,000 policyholders after failing to give them a required discount for storm-proofing their homes, Florida Insurance Commissioner Kevin McCarty announced last week.

Under a consent order that the insurer signed, State Farm Florida must also pay a $1 million penalty to the Florida Insurance Regulatory Trust Fund.

According to Mr. McCarty's statement, the company must issue credits or refunds totaling the $120 million to present or former policyholders who did not apply for, or who did not receive the Windstorm Loss Reduction Rating Plan discount for making their homes more resistant to wind damage.

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