State Farm has a method and reason for just about everything it does. As indicated in yesterday’s post, its actions do not always reveal its strategy.

As a result much experience, I know State Farm may believe it has a very legitimate basis for withdrawing from Florida’s property insurance market. State Farm believes withdrawing from the market is the right thing to do, and that something has gone terribly wrong in Florida.

So what exactly made State Farm executives make this announcement?

I suggest that those wishing to understand this read "The Detailed Reasons" starting on page 8 of State Farm’s Plan for withdrawal. Then, read the January 12, 2009, Final Order denying the rate increase.

I will ponder these myself and try to better ascertain and explain State Farm’s position in this weekend’s post. While consumers and I may not agree with it, I believe that State Farm’s position should not be dismissed without study.

Kevin McCarty has thrown a softball start to the investigation, apparently just asking for mundane policy information.

Unlike Governor Crist and others, I do not think that it is in Florida’s short term best interest for State Farm to leave. However, State Farm cannot bully Floridians in response to a negative ruling by regulators and a judge.