State Farm vs Florida...sharing barbs and smart remarks. State Farm appeals state ruling.

[madfloridian]

about writing homeowners' policies in the state. But the flippant attitudes from the state officials and from State Farm officials make it hard to know what is really going on. Meanwhile the 800 agents and 4500 staffers are caught in the middle with us, their 1.2 million customers.

I talked to our agent this week. Our mortgage company has made a deal with other insurance agents to seek out a good deal for us...almost too good to pass up an offer like that. Was not looking forward to researching it. Yet the State Farm agent said hang in there until June when we know more. They even said that most likely we would be written up until the end of 2010 and probably until 2011.

Sounds like they are trying to get us to hang on to something hopeless while the state and the company exchange caustic barbs...thinking they are all so smart.

Charlie Crist's flippancy about it, saying it would just be better if they left simply appalled me. The decision by State Farm headquarters is going to affect the lives of many here. There is no room for flippancy on this issue now. Yet, the State Farm spokesperson was a real smart ass in this statement today.

State Farm appeals state order on withdrawal

State Farm Florida has appealed the conditions the state set on its planned withdrawal from the state. The 67-page filing, coming at the end of 21-day deadline to file, blasts the February order.

The "conditions actually increase the risk to State Farm Florida's policyholders and the public."

But don't get all worked up for another clash between the insurer and Insurance Commissioner Kevin McCarty. State Farm spokesman Chris Neal said the action is "just to protect our legal rights" as talks continue about how to shift the 1.2 million policyholders to other insurers.

The filing comes as the Senate's banking and insurance panel is expected to hear about State Farm next week.

Here are more details on this issue from Capitol News Service today:

State Farm to Office of Insurance Regulation: You Can't Stop Us

State Farm Insurance is objecting to the state’s order allowing the company to stop selling homeowners insurance in the state. In a 76 page response filed late this afternoon, State Farm says the state cannot force the company to allow its agents to write homeowners from other companies, nor can it prohibit State Farm from putting policies in Citizens. Both were key concessions sought by the state in allowing the company to stop doing business. The state has 15 days to respond.

Meanwhile, State lawmakers are asking the Office of Insurance Regulation why more wasn’t done to keep State Farm from leaving Florida. Regulators say State Farm’s 47 percent rate hike request was just too high. As Whitney Ray tells us, the insurance industry says the state needs to reconsider its tough stance on rate hikes to keep companies in the state.

..."With State Farm preparing to begin phasing out policies in November, reports of people not able to find affordable insurance with other companies are beginning to surface. Lawmakers are questioning the state’s Office of Insurance Regulation to find out whether or not it did enough to keep State Farm in Florida.

OIR Spokesman Ed Domansky said State Farm’s request was too high.

"State Farm’s rate filing was simply not approvable. That decision made by our office was affirmed by an administrative law judge,” said Domansky. Insurance lobbyist says the state needs to loosen its rate hike restrictions, or more insurers could leave.

Here are the conditions the state has set for them to leave:

* State Farm Florida shall surrender its Certificate of Authority within 30 days;

* State Farm shall facilitate the orderly transition of policies from State Farm Florida to the private marketplace in a method directed by the Office and shall not place any of the policies in Citizens;

* State Farm shall not interfere with the appointment of its agents to other private insurance companies to place State Farm Florida policies directly with those other private insurance companies;

* In an effort to minimize the impact of market disruption on all of its policyholders, State Farm shall issue pro-rata refunds of premium to any policyholder seeking to voluntarily cancel or non-renew a policy and will not short-rate the return premium for any policy in any line, whether it be automobile, boat, or property insurance coverage;

* State Farm shall consider all offers to buy or assume all or part of its business. A copy of any such offer shall be provided to the Office within 48 hours of its receipt.

I told the agent that we would be calling the number provided by our Credit Union. I said I realized they were caught in the middle, but we had been loyal for 40 plus years. I said no more loyalty, it's just business now. A mention was made of auto insurance remaining with them, and I said at one time we might have considered it. Not any more.

[flyarm]

1. Thanks for the info madfloridian..we have state farm as well..

they served us well in the Northridge earthquake in Calif, and we have had them 35 years..we will have to look elsewhere as well!! We have two homes , and both are insured by State Farm..it is not a problem in our other state , but in Fla, it is a problem.

We did have a problem with SF when we moved to the east coast after losing our home in Calif getting our new home insured, because of the big claim we had after the earthquake..until it was affirmed that our loss was not of our own doing, but that of the earthquake, but like I said it was resolved.

Thanks again for the info madfloridian.

[madfloridian]

2. I never feel like we are getting straight answers.

Not anymore. The office was subdued when I called, so was I. Said I was just calling per the letter they sent. I think I will contact the number from our credit union on Monday. If someone is willing to do the work....I am willing to let them at this stage.

[iamjoy]

3. So Much For "Good Neighbors"

Not that I believe Nationwide is really on my side or that anyone is in good hands with Allstate.

Did these slogans once mean something or were they always bull?

[madfloridian]

4. Empty slogans.

Now more so than ever.

[madfloridian]

5. Situation getting seriouser by the day.

State Farm Exit Causes Headaches

State regulators say Florida's insurance market can absorb most, if not all, of the 1.2 million policies State Farm plans to drop over two years beginning in November. About 470,000 policies, including all boat-owner policies, will be dropped during the first year.

But many insurers won't sell policies for older homes and homes in high-risk coastal areas.

"Some policyholders are going to find cheaper rates, but many of them, particularly those in older homes, are going to find much higher rates," said Alex Sink, Florida's chief financial officer.

State Farm's departure means Citizens may get even larger, increasing its chances of running a big deficit after a hurricane.

"I'm more concerned that it's going to delay making it smaller," said Chip Merlin, an insurance lawyer in Tampa who sat on a task force charged with returning Citizens to its original role as the state's insurer of last resort."

State Farm this week said we would probably be renewed until 2010 fall, and perhaps even to 2011.

Who do you believe anymore.

[Sancho]

6. Likely State Farm hasn't sent it's quota of contributions to the GOP yet...

If you could track it, every agent could give $2000. In Pinellas, the insurance agents and companies are some of the biggest donors.

[WestSeattle2]

7. State Farm, Farmers, Allstate.....all scum

I won't have anything to do with any of these three, ever. Though I've never filed a claim with any insurer, it seems that after any disaster these three are all in the news and not favorably. Story after story pops up about how they treat their "valued" customers. What a crock. They're thieves and liars to put it bluntly. Why any business person would represent any of these three as an agent, is beyond me. It actually calls into question the agent's ethics and morals in my mind.

[madamesilverspurs]

8. Rising premiums, anyone?

Greeley, Colorado, is home to one of State Farm's regional offices. A couple years back they moved their operations into a brand new 400,000 square foot office facility on land that has the highest elevation between Greeley and the mountains. The very pricey real estate came with sweeping views in every direction. They had to pay for it somehow. Ironically, last year the building was on the edge of the path of the tornado that tore a swath through Windsor, just to the north of the campus. Although there were no injuries at their location, a number of cars and trucks were tossed around in the parking lot and some of the windows blew out. Again, they had to pay for it somehow. And, somehow, I doubt they encountered the same claim difficulties suffered by their customers.

[madfloridian]

9. Hard to know what to do.

Whether to push ahead trying to find new agent, or wait as they request until June.

The FL legislators are getting very mad about this issue, and they are insisting the state work with State Farm.

They are getting calls overwhelmingly in favor of that. People are finding they will have to pay more in many cases.

What a mess.

[1]

10. i don't get this. state farm doesn't want to do insurance in fl anymore...

ok.

so find another insurance company. obviously i am missing something here. what exactly is the problem?

[madfloridian]

11. Many do not insure older homes. People are trying to get other insurance.

Some are finding it, but most are having trouble.

Your simplistic view bothers me.

[1]

13. thank you. i didn't mean to bother you, i didn't understand the problem...

if private companies do not wish to insure older homes, perhaps it is time for the state or federal government to step up to the task.

private companies do not insure flooding. this sounds like a similar situation.

do you want to force state farm to insure what it does not want to insure? what is your solution?

[madfloridian]

14. I have no solution. Do you?

I think they are pretty rotten to be in the insurance business and only want to insure some things and people and not others.

It's the same thing as a company taking premiums for years and then dropping someone if they get ill.

I don't think you grasp the complexity of the situation

[madfloridian]

15. Yes, I do have a solution after all.

People with older homes could just leave Florida. That would work really well.

[1]

16. i've been pretty vocal here about the fact i do not believe in insurance...

my post was no knock on you or the state of fl. i just didn't get how giving your money to this company or that company was any different. that's all.

i own a home, but i do not have homeowners insurance.

i live, but i do not have health insurance.

i drive a car, now there they have me... i must have insurance to register my vehicle. but i only carry the absolute minimum.


everybody i know that has insurance and pays their premiums diligently gets fucked by these insurance companies every time they actually need the insurance company to do anything for them. its almost as if they had no insurance at all. read all of the threads on du about car insurance, dental insurance... if you want a real eye opener about health insurance watch the movie "sicko."

i prefer to roll the dice and take my chances. and if i get fucked, then i guess i'll just be like all of those who pay premiums each month...

[dysfunctional press]

12. my only experience with state farm was with car insurance- and they SUCKED.

we had another state farm customer back into us at a light, and even though he admitted it, his agent refused to agree to a payout.
and another time, state farm was involved with massive fraud with a body shop that worked on our car. they billed for a lot of parts that were actually left out after our car had been rear-ended in another incident- the missing parts were found out when we took the car intoa dealer for servicing several months later.

i wouldn't sign up with state farm again on a bet. for ANYTHING.

[imdjh]

17. I don't see what the problem is

I don't want to be with State Farm for homeowners and I certainly don't want to be with any of these bullshit insurance companies that try to take me out of Citizens. Been there and done that with Poe Financial- I got sick of getting mail from my mortgage company telling me that my homeowners insurance company sucked and I need to show them some kind of proof that it didn't or Wells Fargo was going to "purchase" a policy "on my behalf" and tack it on to my mortgage.

I don't want to be with a private company. I have had it. I want to be with Citizens and I want EVERYONE to be paying into Citizens so that Citizens isn't simply insuring the highest risk properties and in essence insuring against interest.

This seems like a nobrainer to me, so why is anyone trying to "keep State Farm"?

I have them for auto insurance, and the company seems to be very good, especially when I compare it to my experience and rates with Allstate.

The problem is that they are a bunch of gaddammned liars. State Farm's game on this is that they "lost 200 million dollars" in Florida last year with no hurricane claims. That's bullshit, and I don't even have to research it to know it. I don't doubt that State Farm lost $200M in their Florida subsidiary last year, but it was in playing the stock market not in claims. I'd bet on it.