Court Denies State Farm Rate Hike

[The Straight Story]

Court Denies State Farm Rate Hike

TALLAHASSEE, Fla. -- An appeals court has backed a decision by Florida regulators rejecting State Farm's request to hike Florida property insurance rates by 47.1 percent.

The Office of Insurance Regulation said Tuesday that the 1st District Court of Appeal affirmed Insurance Commissioner Kevin McCarty's order that rejected the rate hike request from State Farm.

The court did not give a reason for its decision.

State Farm has 15 days to file a motion for rehearing.

The Illinois-based insurance giant announced plans earlier this year to withdraw from the property insurance market in Florida, claiming that its Florida subsidiary could not remain solvent.

http://www.clickorlando.com/news/20129670/detail.html

[benld74]

1. 2-1 odds, State Farm is in LOUSY financial shape - Anybody know for sure?

[AndyA]

2. They are raising rates BIG TIME.

Our annual business liability policy premium increased by 20% this year. No claims. No increase in coverage. Our agent said "all business policy premiums went up this year, across the board."

State Farm SUCKS. They retroactively applied a premium payment to an EXPIRED POLICY on mine once. That is ILLEGAL in my state.

[bemildred]

3. I just dumped them for homeowners in California.

They fucked up, I don't know how, but I'm not paying for it.

[DURHAM D]

4. That is too bad.

This means that those of us in the other 49 states will pay higher premiums on our homeowner's policies to cover the potentional losses in hurricaine prone Florida.

Just for the record - last time I checked State Farm is based in Indiana, not Illinois.

[ProdigalJunkMail]

5. what will likely happen is that State Farm will no longer insure

new residences in FL. There are several companies that are refusing to insure homes that are being purchased...they are continuing to insure homes that are ALREADY covered by a policy...but not issuing any new ones. And some of those companies are in fine financial shape.

sP

[DURHAM D]

6. From what I can read State Farm is leaving Florida.

They will be canceling all the current policies over the next 1.5 to 2 years. Lots of people will be upset because their State Farm policy rates are lower than others because they offer multi-product discounts.

Meanwhile, the state's homeowners insurance fund is drying up plus the newer companies that have moved into Florida over the past year or two (to fill the State Farm void) are now increasing their premium rates because they don't have enough money in the bank and if they have a hurricane this year or next they will be busted.

Meanwhile, State Farm had recognized the risk and was trying to adjust accordingly. Looks like they will just leave instead.

Just got off the phone with my brother in Orlando - he is not happy because he wanted the increased State Farm premium rates to be approved. He gets it.

[KoKo]

7. We have them here in NC...no rate increase so far.....

We have been with State Farm for Home and Auto for more years than anyone would want to know...

No problems so far...still we must be watchful.