We’ve blogged about State Farm’s wacky schemes to price gouge Florida consumers many times here before beginning with mass cancellations right on through to their beat down by the hand of Florida Insurance Commish Kevin McCarty. Other posts on this subject can be found here and here. As Mississippians can attest first hand the good neighbor fights very dirty and this Florida pullout fills that bill. We can only hope McCarty shows them the door completely and in the entirety not allowing the Farm to cheery pick profitable business while dumping their less desireable lines on the taxpayers. Daniel Hays at the National Underwriter has the story:
State Farm, Florida’s second largest property insurer, said today it is pulling out of the Florida home insurance marketplace two weeks after being turned down for a 47.1 average rate increase by the state regulator.
The company said it had filed plans to discontinue its Florida property insurance product lines because of its “substantially weakened financial position” related to its inability to obtain approval of “what it believes to be adequate property insurance rates.”
Florida Insurance Commissioner Kevin McCarty on Jan. 13 had upheld an administrative law judge’s ruling that State Farm had not proven a case for an increase.
In a statement today Mr. McCarty said, “Although this is disappointing news for Floridians, who have been loyal customers of State Farm, we are not surprised by State Farm’s decision to stop offering all property insurance in Florida.”
He said the Office of Insurance Regulation had “been hearing for months of possible plans to make such a move in Florida, including a document submitted to the office as recently as Dec. 5 as part of their recoupment filing that showed an anticipated reduction to 655,000 HO policies by 2010.” Continue reading “Breaking: State Farm Dumps Florida….”
As I once again catch up to the news I was struck by the assortment of local stories that dovetail nicely with our theme and recent posts here on Slabbed. We’ll start with the Sun Herald editorial board and a recent Op-ed that left me scratching my head as I was reminded of the old popular stock cliche’ in “Lipstick on a pig”. Let’s start with some excerpts:
Lawmakers need to do all they can do during this legislative session to ensure that insurance will be both affordable and available for homeowners in South Mississippi.
To provide further proof of the necessity of such legislative action, the Gulf Coast Business Council has commissioned an independent study by the Stennis Institute to calculate the statewide economic impact of current insurance rates on the Coast. The report will estimate how much tax revenue — from sales taxes on construction materials to income taxes on those employed in every phase of the housing industry — the state is losing due to current insurance rates.
That report is expected to more than justify putting more money into the “wind pool” to lower premiums.
That, in turn, should result in increased economic activity on the Coast.
With this new report, all legislators should be convinced that Mississippi needs to make a clear commitment to the Coast in recognition of this region’s economic importance to the entire state.
And of course the swine lipstick slather party is couching a taxpayer subsidy in terms of economic development. We’ve covered these concepts many times on Slabbed and it doesn’t take an expensive study to figure the obvious that the high cost of insurance costs Mississippians taxes, money and jobs. But does that justify putting more taxpayer money into the Mississippi wind pool? The editorial board at the Sun Herald seems to think so as the editorial continues: Continue reading “Around the GO Zone in 60 Seconds: Lipstick on a Taxpayer Subsidy, Confidence and Cottages”
How many times since Katrina have you said, there ought to be a law and gone on to explain? Plenty, I’m certain if you live in one of Mississippi’s three coastal counties.
This is your chance. The 2009 session of the Mississippi Legislature is heading toward its first major deadline. According to the Timetable published on the Website for the Mississippi Legislature, next Tuesday, February 3rd, is the deadline for Committees of the House and Senate to pass bills that were introduced in each Chamber. In other words, bills introduced in the House must pass the appropriate House Committees and Senate Committees, likewise, must pass bills introduced there.
Since insurance is the concerned of the slabbed, you’ll want to start by looking over the legislation referred to the House Insurance Committee and the Senate Insurance Committee.
Bills are listed in a three-column format:
- Left Column: Bill number linked to the the text of the bill as introduced.
- Center Column: Short-title with date introduced and Committee assignment(s) below linked to a history of the legislation.
- Right Column: Primary author/co-author
Click on the links for Senator Baria’s Policyholder Bill of Rights so you’ll know what to expect when reading other bills: Continue reading “There ought to be a law… 2009 Mississippi Legislature”