A Texas judge has upheld an order against State Farm to refund$310 million to policyholders for alleged excessive rates from asfar back as 2003.

The order was issued by Texas Insurance Commissioner MikeGeeslin in November 2009. Since then, the insurer and regulatorhave fought in court over the order.

The commissioner's office confirms that Travis County DistrictCourt Judge Tim Sulak upheld the order. State Farm will beresponsible for the refunds, plus interest, says Jerry Hagins,spokesman at the Texas Dept. of Insurance.

"This is a major step toward bringing this issue to aconclusion," says Geeslin in an e-mail.

When the order was first released, State Farm likened the impactto the losses it incurred from Hurricane Ike in 2008. The insurerhad been sparring with Geeslin over rate hikes State Farmsought.

Texas has a file-and-use rating system.

State Farm, the state's largest writer of homeowners insurance,has insisted it owes nothing—that its rates were neverexcessive.

"The judge thought the commissioner had substantial evidence,"counters Hagins.

State Farm spokesman Kevin Davis says the insurer will appealthe decision and remains confident Geeslin's order will bereversed.

The company's rates "are and always have been fair andcompetitive," says Davis.