Mr. Donelon said "after an extensive review of the filing and consideration of multiple factors including data provided by State Farm, the rate revision was determined to be unreasonable."

Determining factors, he explained, included use of an excessive loss trend by State Farm, as well as an unreasonable hurricane risk provision.

Also mentioned as an item of concern by Mr. Donelon was "the significant weight given to the latest version of the EQECAT hurricane model used by State Farm in justifying their revision. The EQECAT model's projected hurricane loss provisions are 150 percent higher than projected hurricane loss provisions produced by the two other industry hurricane models utilized by State Farm in this filing, without adequate supporting evidence for the difference," the commissioner said.

He added that, "When a rate revision is filed, we use all of the evidence available to make the determination as to whether the revision is reasonable and justified. In this case, State Farm Fire and Casualty falls short of proving the need for an increase of this magnitude."

Molly Quirk-Kirby, a State Farm spokesperson said the insurer is "disappointed with the decision, but we will continue to have conversations with the Department of Insurance because we feel the rate increase is justified and needed."

In having continuing discussions with the department, she said the company will "Try to address some of their concerns."

The department said in 2008, State Farm Fire and Casualty Company had a market share of 27 percent of all Louisiana homeowners policies and is the largest homeowners policy provider in the state. The company said its share is 30 percent..

Mr. Donelon explained today that discussions with the company would not change his action, "I have made my decision and we were too far apart to justify negotiating our concerns." There were three actuarial objections, he noted.

The commissioner said he will formally provide the company with his written reasons for action and, "They can appeal or adjust to accommodate our concerns and refile."