State Farm has filed plans with the Office of Insurance Regulation (OIR) to cancel 1,200,000 Florida property insurance policies. This plan includes insurance coverage for homeowners, renters, condominium unit owners, personal liability, boats, personal articles, and business property and liability policies. State Farm claims that it is losing money in Florida because it’s proposed 47.1% rate increase was turned down by the OIR in January. It also claims that during the first three quarters of 2008 State Farm Florida’s surplus fell by $201million substantially weakening State Farm Florida’s financial position and ability to pay potential future claims. State Farm Florida was downgraded to B (Fair) by AM Best in June. The Florida Office Of Insurance Regulation has tentatively approved State Farms withdrawl plan subject to a hearing before the Division of Administrative Hearings currently scheduled for December 17. Concerned policyholders should contact us immediately at (239) 596-6226 for additional information.
