Anyone surprised to learn State Farm Florida will be staying in the State? h/t Chip Merlin’s Property Insurance Coverage Blog for the link to the official press release:
The Florida Office of Insurance Regulation (Office) today announced that Commissioner Kevin McCarty has issued a Consent Order that resolves the pending litigation between State Farm Florida and the Office over State Farm Florida’s plan to leave the property insurance market. By the terms of the Consent Order, State Farm Florida will remain a significant player in the Florida residential property insurance marketplace.“This agreement is the product of a long and arduous negotiation process,” remarked Commissioner McCarty. “The final result is beneficial to the people of the State of Florida, and beneficial to the Florida insurance marketplace. The consent order satisfies the Office’s requirements issued in our Order dated Feb. 13, 2009, and allows State Farm Florida to remain a viable insurer in the Florida market.”Under the terms of the Consent Order, State Farm Florida will non-renew no more than 125,000 policies of its 810,416 residential property policies reported as of Oct. 2009. Even after these non-renewals, State Farm Florida will remain the largest private insurer of property insurance risk in the state of Florida. The Consent Order also grants State Farm Florida a 14.8 percent rate increase for all homeowners’ and condominium unit owners policies, which was based on information provided to the Office by State Farm Florida. (emphasis added)The consent order concludes a series of events that began with the Office’s denial of State Farm Florida’s ultimate average rate request of 67.1 percent. The Consent Order signed today results in the withdrawal of State Farm Florida’s withdrawal plan filed Jan. 27, 2009 and the cancellation of the Jan. 25, 2010 hearing before the Division of Administrative Hearings.
Time will tell if there is a devil in the details as the Consent Order is implemented.