Florida Insurance Commissioner subpoenas State Farm

Jan 29th, 2009 | By Hot News Reporter | Category: Insurance Today

Two days after State Florida’s Insurance said it wanted to pull out of Florida, the state’s insurance commissioner says he’s issued a subpoena requesting detailed information about the company’s Florida property insurance policyholders.

The subpoena is requesting names, addresses, policy types, policy limits and premium information for each of State Farm’s Florida policyholders.
“We need to fully understand all the potential risks, so that we can properly evaluate State Farm’s withdrawal plan,” Commissioner Kevin McCarty said in a press release.

State Farm said it wants to stop writing property insurance in the Sunshine State, blaming the decision on its inability to obtain state approval for rate increases.

“Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice,” said Jim Thompson, the insurer’s president, in a press release.

The request, which requires regulatory review, would eliminate coverage for homeowners, renters, condo-unit owners, personal liability, boats, personal articles, and business property and liability policies.

It will not affect residents’ ability to obtain car, life or health insurance, or other financial services the company provides.

The company said it has submitted a two-year plan to the state that will give customers time to find other coverage. State Farm Florida said it will not be able to take action until it receives state approval.

McCarty said the request for the information is designed to understand how the company’s statewide risk is spread and will help the state find other companies that might be willing to write policies for State Farm policy holders.

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