State Farm to Cut Floridians' Premiums by 9%

It is being reported that State Farm Insurance Company has finally reached an agreement with the State of Florida concerning rate cuts and other business practices. The gist of this agreement is:

• State Farm will cut its rates 2% more in addition to the 7% reduction it made this summer.
• The company can no longer cancel policies just because the homeowner does not also get auto insurance or life insurance from State Farm.

Many policy holders should receive a refund since the initial reduction of 7% was not sufficient in the state's eyes. So that further 2% reduction is apparently retroactive, and that over payment is to be refunded, from what I read. Imagine that, an insurance company giving customers some money back!

State regulators are getting miffed at the insurance companies and want to know why they are not passing on the savings they receive from having easier access to back-up coverage from the Florida Hurricane Catastophe Fund. In many cases, these companies who are paying less for reinsurance coverage are in fact asking for rate increases.

At least with this latest surrender by State Farm, the largest property insurer in the state, the other companies will hopefully get the message that the government and the citizens of Florida have had ENOUGH!

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