Florida Insurance Commissioner Kevin McCarty today announced approval of State Farm Insurance Florida's withdrawal from the state, subject to several major conditions (http://www.floir.com/pdf/SFWithdrawalPlanOrder.pdf):
. State Farm Florida shall surrender its Certificate of Authority within 30 days, which is needed to write or renew policies.
. State Farm shall not place any of its policies in Citizens Property Insurance Corp.
. State Farm shall allow its agents to place property insurance policies directly with other private insurance companies.
. State Farm shall issue pro-rata premium refunds to any policyholder seeking to voluntarily cancel or non-renew, and not short-rate the return premium for any policy in any line, including automobile, boat or property insurance.
. State Farm shall consider all offers to buy or assume all or part of its business.
The Plan as submitted presumed 470,000 policies covering real property would not be renewed the first year, and the remainder spread out over 2 more years after the effective date of the first non-renewal. State Farm agents will assist insureds to apply for coverage in the Citizens Property Insurance Corp.
The Plan explains that State Farm's Florida surplus declined approximately $100 million through 9.30.08 and the projected continued decline would make State Farm Florida insolvent in 2011.
Borrowers, if you have any questions, contact Florida Office of Insurance Regulation, 850-413-4274.
Sherry Armstrong, REALTOR
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