A bitter, 17-month dispute between state regulators and Florida's largest private property insurance carrier was resolved following an eleventh-hour deal between State Farm Florida and Insurance Commissioner Kevin McCarty.
The agreement, announced in December, gives State Farm a rate hike and permission to shed up to 125,000 policies, many of which have a higher risk of hurricane damage. In return, the state avoids the prospect of losing a major carrier at a time when Florida's property insurance market remains volatile.
"This is an important step," said Jim Thompson, president of State Farm Florida. "It helps stem State Farm Florida's deteriorating financial condition. It reduces the company's risk exposure. It moves us closer to rate adequacy. And for most of our customers, it means that State Farm Florida continues to be there for them."
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