State Farm Tells Governor Crist It Will Not Leave Florida If Bailout Bill Is Signed
I do not know why the State Farm Florida President would write a letter to Governor Crist telling him State Farm will remain in Florida if Crist signs the bailout bill. Of course it would. What a competitive advantage a few large insurers would have over the rest of the domestic competition.
An Insurance Journal article which discussed the letter noted:
"Florida's biggest private insurer of property, State Farm Florida, has told Gov. Charlie Crist it would "be willing to re-examine its options" and its decision to leave the state's home insurance market if he signs a bill on his desk designed to deregulate rates for large insurance companies.
Jim Thompson, president, State Farm Florida, in a letter to Crist dated June 16, stressed that any change in his company's current plan to leave the state would have to happen quickly due to the insurer's compromised financial state. Ratings analysts at A.M.Best last week downgraded the insurer."
This is obvious to me. Why else would State Farm have lobbied for the bill?
The only question remaining is whether Crist will sign the bill into law or veto it.
Good afternoon. So many things happen "behind the scenes" if you will that most people are oblivious to - through no fault of their own (of course). If you don't work in a particular area, reside w/someone that does, etc., you may not know the inner workings of any insurance company or their "affiliates."
While State Farm has many defense attys. at its disposal, if memory serves me correctly (and it usually does), ONCE UPON A TIME there once was a law firm called "Wood & Crist, P.A." that represented State Farm...........GO FIGURE !!
SHIRLEY HEFLIN
Regulation protocols have not kept insurers from trying to promote unjustified rates.
Deregulation would have its own cause and affect.
As with Allstate, let them do business elsewhere to make up for their poor ratings.
Pretty good post. I just came across your site and wanted to say that I've really enjoyed browsing your posts. Anyway, I'll be subscribing to your blog and I hope you write again soon!
As a public adjuster is it a good thing if he signs the HB1171 bill? I received this message in an email
"As insurance professionals, we all should take the time to call this number and support HB 1171. If Governor Crist vetoes this bill, one by one insurance carriers will begin pulling out, leaving us with E&S markets and Citizens as our only options. While these markets serve a great purpose in our state, they were never intended to be large property insurers, but rather a medium to high risk alternative to Risks who cannot qualify for a standard market, ie: “markets of last resort.” ...I cannot stress enough how important it is we all call this number to voice our support for HB 1171 AND forward this email to any and everyone you know who could be affected directly or indirectly !!
Please take a few minutes and do something that could ultimately change the course of our industry. The number is (850)-488-7146"
I tried to look up the particulars but was even more confused. Please Advise.
Shirley, Sarah, and ClaimHawk,
Thanks for your comments.
Sarah--you have great taste and hope you become a regular.
Gary,
I simply take the side of consumers rather than worry about how it may effect your business.
I imagine that some public adjusters may be concerned that State Farm's departure will mean less business. Maybe that does not speak well of State Farm's claims history because State Farm customers impliedly need more help from public adjusters than others. Or, maybe there is a concern people can afford only less coverage because rates will go up. I can only speculate.
However, the email to you is typical of the propaganda that goes on in politics. It is wrong and wildly crazy that other carriers will leave Florida. Only State Farm has said it is leaving, and only after losing a hearing verifying that its approved rates were sound and provided a fair profit.
To me, the issue was simple:
Can we allow an major insurer to play by rules only to benefit it rather than the rules everybody else agrees to play by? Why does State Farm deserve special treatment and an unfair advantage over all it smaller competition?
From my view, it would have been terrible public policy to allow this type of one-sided legislation to become law. If State Farm wants to be in a business where it gets to dictate what the rules are so it obtains an unfair advantage over smaller competitors, I think it is best that we allow this corporate citizen to take its ball back home and not play.