Texas AG Demands Travelers Stop Airing False Ad

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    NEWSLETTERS

     

    Texas Attorney General Greg Abbott has told Travelers Insurance to stop airing a TV advertisement that he says is deceptive.

    Thursday's cease and desist letter, to The Travelers Companies Inc., says the ad wrongly tells Texas homeowners to purchase additional vehicle insurance or risk losing their homes if they have inadequate insurance after a traffic accident. (See the commercial here.)

    Abbott says state law already protect homeowners so "it is improper for Travelers to scare Texans into buying insurance they may not need."

    The AG says, under the Texas Deceptive Trade Practices Act, Travelers could be liable for up to $20,000 based on each airing of the ad.

    A Travelers Companies Inc. spokesman did not immediately return a call from The Associated Press.