.Fla. regulator OKs State Farm's pullout from state
TALLAHASSEE, Fla. — Insurance Commissioner Kevin McCarty opened the door Friday for State Farm Florida to withdraw from the state's property insurance market, but only after it meets several stipulations.
McCarty said the sooner State Farm leaves the market, the better.
"Quite frankly, State Farm has been acting in a condition hazardous to the policy holders and hazardous to the people of Florida," McCarty said. "We do not believe that they can maintain trustworthiness and fitness to continue to do business in Florida."
His order stated that State Farm Florida must surrender its license within 30 days, facilitate the orderly transition of policies to the private marketplace and not place any policies with state-backed Citizens Insurance.
"What State Farm is trying to do is hold the people of Florida and their policyholders hostage and we're not going to let them do that," McCarty said. "We're requiring them to use the private sector and not warehouse them in Citizens. Citizens is already overtaxed with the policies that they have."
However, policyholders can continue doing business through existing State Farm agents as long as the replacement contracts are not with Citizens.
"There are a number of insurance companies who are committed to helping Florida's families protect their property and assets," said Alex Sink, the state's chief financial officer.
State Farm plans to continue serving some 2.8 million customers who have their vehicle insurance with them.
McCarty's order also specified that State Farm must pro-rate premium refunds to any policyholder seeking to voluntarily cancel or not renew a policy.
State Farm Florida, a subsidiary of the Illinois-based insurer, said last month it could not continue doing business in Florida's high-risk property market without becoming insolvent.
The company's withdrawal affects roughly 1.2 million Floridians who have policies on their homes, condos and businesses.
"We hope to have further conversations with the OIR (Office of Insurance Regulation) to create an orderly process that is best for our customers, our agents and the marketplace," said Chris Neal, public affairs manager for State Farm Florida.
State Farm has 21 days to review McCarty's order and decide whether to abide by it or request a hearing.
Just last week, top State Farm executives appeared before a House committee to explain their reasons for leaving the state.
Palm Beach Post
I am still stunned that this could happen. These people have taken our money for the last 50 years. How can they just up and leave? They should have to buy out our insurance contract? How can it be that they can just close down and leave us all in the lurch. And the regulator, they will let them jam every home owner in the state, an still allow them to do business in this state, like car insurance. They should be barred from doing any business at all in the state, we need an investigation, a special prosecutor, a grand jury, to look into these so called regulators. I want all my money back, this is fraud, what did I buy with 50 years of premiums? nothing I have been robed. We should start a class action to get all our moneys back. If this is the way insurance companies can do "business" in this state the state should cancel the requirement to own insurance in the first place. They have turned into the equivalent of mob enforcers.
I could have paid all that money into an escrow account and invested it in wall street for the last 50 years and even with the meltdown, I would still be way ahead, at least I would have more than nothing!
What a scam.
Florida, see it like a native.
McCarty said the sooner State Farm leaves the market, the better.
"Quite frankly, State Farm has been acting in a condition hazardous to the policy holders and hazardous to the people of Florida," McCarty said. "We do not believe that they can maintain trustworthiness and fitness to continue to do business in Florida."
His order stated that State Farm Florida must surrender its license within 30 days, facilitate the orderly transition of policies to the private marketplace and not place any policies with state-backed Citizens Insurance.
"What State Farm is trying to do is hold the people of Florida and their policyholders hostage and we're not going to let them do that," McCarty said. "We're requiring them to use the private sector and not warehouse them in Citizens. Citizens is already overtaxed with the policies that they have."
However, policyholders can continue doing business through existing State Farm agents as long as the replacement contracts are not with Citizens.
"There are a number of insurance companies who are committed to helping Florida's families protect their property and assets," said Alex Sink, the state's chief financial officer.
State Farm plans to continue serving some 2.8 million customers who have their vehicle insurance with them.
McCarty's order also specified that State Farm must pro-rate premium refunds to any policyholder seeking to voluntarily cancel or not renew a policy.
State Farm Florida, a subsidiary of the Illinois-based insurer, said last month it could not continue doing business in Florida's high-risk property market without becoming insolvent.
The company's withdrawal affects roughly 1.2 million Floridians who have policies on their homes, condos and businesses.
"We hope to have further conversations with the OIR (Office of Insurance Regulation) to create an orderly process that is best for our customers, our agents and the marketplace," said Chris Neal, public affairs manager for State Farm Florida.
State Farm has 21 days to review McCarty's order and decide whether to abide by it or request a hearing.
Just last week, top State Farm executives appeared before a House committee to explain their reasons for leaving the state.
Palm Beach Post
I am still stunned that this could happen. These people have taken our money for the last 50 years. How can they just up and leave? They should have to buy out our insurance contract? How can it be that they can just close down and leave us all in the lurch. And the regulator, they will let them jam every home owner in the state, an still allow them to do business in this state, like car insurance. They should be barred from doing any business at all in the state, we need an investigation, a special prosecutor, a grand jury, to look into these so called regulators. I want all my money back, this is fraud, what did I buy with 50 years of premiums? nothing I have been robed. We should start a class action to get all our moneys back. If this is the way insurance companies can do "business" in this state the state should cancel the requirement to own insurance in the first place. They have turned into the equivalent of mob enforcers.
I could have paid all that money into an escrow account and invested it in wall street for the last 50 years and even with the meltdown, I would still be way ahead, at least I would have more than nothing!
What a scam.
Florida, see it like a native.
posted by madtom at 1:28 AM
2 Comments:
If you've been getting your oil changed at the local Wal Mart for 50 years and they decide they can't make enough money doing that because of state regulation and choose to not provide that service anymore, do you have a RIGHT to force Wal Mart to provide you with oil changes until you decide to take your business elsewhere? Does that mean they can't sell dog food? I would be asking why State Farm doesn't think it's a profitable risk to provide home insurance in FLA while others do. I'd be concerned that others won't be able to cover in the event of a major event like those FLA is famous for. State Farm like to make money, so why are they leaving? Guv'mint, that's why.
Oil change? Geez, lets simply say that I am not forced to get an oil change.
I already contacted a lawyer about getting my money back less a reasonable operating profit for State Farm.
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