What a coincidence – State Farm files for 19% rate increase in Louisiana!

Table created with data from the Daily Comet

After MID awarded State Farm a 19.5% rate increase, the Company decided to forgo the shock ’em  first approach it brought from Florida Mississippi- …and the score in the State Farm game was 45-19.5…– and go with a 19% requested increase in Louisiana.

The Times-Picayune carried the AP story; but, hanging on Editilla’s Ladder was the more detailed story in the Daily Comet.

“State Farm, Louisiana’s largest homeowners insurer, has asked regulators for a 30 percent rate increase for policyholders in Terrebonne and Lafourche parishes.

Coastal parishes would take the brunt of the proposed increases, which average 19.1 percent statewide.

The Louisiana Department of Insurance will consider the request, which could generate $67.6 million, or an average of about $229 per Louisiana policyholder. The company has about 296,000 policyholders in the state…”

This brings us to the part of the story where things start to go fuzzy, shall we say.  Continue reading “What a coincidence – State Farm files for 19% rate increase in Louisiana!”

Home $weet Home for State Farm Florida

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.” Continue reading “Home $weet Home for State Farm Florida”

SLABBED Daily – June 19

Editilla was cooking on yesterday’s Ladder! Here’s a sample, have a bite – but first, Editilla just sent this sizzle on the Ladder today:

4 Investigates: Corps employees masquerading as commenters?

Is the Corps of Engineers Astro-Turfing It’s Critics?

Speaking of turning up the heat, Sam Friedman asks, Is this Hank’s last stand?

Chip Merlin has warmed things up in Florida with his latest post:  The Dirty Secret of Exclusions Some Major Insurance Companies Like State Farm, Allstate, Nationwide and even USAA, Do Not Want You to Think About and a great one I missed: Depreciation Should Not Be Taken for Partial Losses That Are To Be Repaired

… from round and about:

A.M. Best Downgrades State Farm Florida; Outlook Negative (Insurance Journal)

Obama Insurance Views Mirror Those of P/C Agents, Insurers, Regulators (Insurance Journal)

Insureds Entitled to Additional Flood Coverage in California (Insurance Law Hawaii)

…and straight from Congressman Taylor’s blog: Nationwide’s two-page Wind versus Flood Q & A for Mississippi and Alabama h/t Brian Martin

Not exactly a beach book but a lot of interesting reading. TGIF

Chip Merlin on “State Farm’s Power Play and Propaganda Ploy”

State Farm’s decision to withdraw from Florida has invited comment and Florida attorney Chip Merlin allowed us to cross post his comments here.

State Farm is hard to figure out. They say one thing and often do another. When you finally get to the decision makers, there is usually some logic to why they do things despite disagreement from consumers or regulators. State Farm’s announcement that it was leaving the Florida property market really has me wondering–“what’s up?” From what I read and hear, I am not the only one.

The number of building policies affected is estimated to be between 800,000 and 950,000. Only Citizens Property Insurance Corporation insures more structures in Florida. Approximately 1.2 million total policies will be phased out by State Farm over two years. Under Florida law, State Farm has to file a plan to remove itself from Florida. Kevin McCarty, of the Office of Insurance Regulation, will then step into the picture to evaluate and investigate State Farm’s actions.

McCarty has taken a very calm ‘wait and see’ attitude. Very smart. He knows that State Farm does not just announce leaving a market without a strategic plan in place to help its overall position throughout the country and in Florida. Continue reading “Chip Merlin on “State Farm’s Power Play and Propaganda Ploy””