State Farm drops plan to withdraw from Fla. property insurance market, obtains rate increase
By APWednesday, December 16, 2009
State Farm drops plan to withdraw from Fla. market
TALLAHASSE, Fla. — State Farm Florida has dropped plans to withdraw from Florida’s property insurance market.
Florida Insurance Commissioner Kevin McCarty on Wednesday announced a settlement with the insurer that includes a 14.8 percent rate increase.
State Farm Florida, the state’s largest private homeowner insurer, will also be allowed to not renew 125,000 of its 810,000 policies.
The subsidiary of Illinois-based State Farm Insurance had announced it would withdraw from Florida after McCarty rejected a 47.1 percent rate hike. Company officials had said a large increase was needed to remain financially viable in the hurricane-prone state.
State Farm Florida President Jim Thompson said Wednesday’s settlement would allow the company to stabilize its financial condition.
Tags: Florida, North America, Tallahasse, United States