TALLAHASSEE, Fla. – Jan. 7, 2011 – State Farm is in the process of notifying 125,000 Florida homeowners that their policies will be dropped, and should finish notifications in the next few weeks.
Rather than withdrawing completely from the Florida market, State Farm made an agreement in late 2009 with Insurance Commissioner Kevin McCarty to shed a limited number of policies and keep almost 700,000 policies. In return, the company was granted an average 15 percent rate increase.
Meanwhile, state-run Citizens Property Insurance has expanded dramatically, and insurance regulators have been hoping that small insurers based in the state would pick up the policies dropped by State Farm.
Source: St. Petersburg Times (FL) (01/04/11) Harrington, Jeff
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