State Farm Deadline In Florida Is Looming
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Updated: 8:43 PM Jun 22, 2009
State Farm Deadline In Florida Is Looming
Before the week is out, Governor Charlie Crist must make a decision on the most watched bill of the legislative session. House Bill 1171 is an effort to keep State Farm in Florida by letting large insurance companies set their own rates.
Posted: 8:43 PM Jun 22, 2009
Reporter: Mike Vasilinda

State Farm's Future Still Lingering
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Before the week is out, Governor Charlie Crist must make a decision on the most watched bill of the legislative session. House Bill 1171 is an effort to keep State Farm in Florida by letting large insurance companies set their own rates.

The governor faces the unenviable choice of angering hundreds of thousands of State Farm customers, or potentially running new start up companies out of business.

It is called the consumer choice act. House Bill 1171 would let well-funded insurance companies bid for your business. State Farm agent Kathy Fain in Apalachicola says consumers could decide if the price was worth the coverage.

“If you don’t want to pay the rates by a de-regulated company, then shop somewhere else. Go somewhere else.”

The measure was designed to keep State Farm writing policies in Florida. The company plans to stop writing a million of them over the next two years. In a letter to the governor last week, it said it would reevaluate its options if HB 1171 becomes law.

Ed Domansky says insurance regulators say the companies are offering no guarantees.

“Neither state farm nor any other insurance company in Florida has come to the commissioner and indicated that they plan to offer policies or stay in the state of Florida if HB1171 becomes law.”

A State Farm corporate spokesman declined to comment for this story. Read between the lines that they don’t want to say anything to anger the governor.

Agent Dick Franklin says his future may be in the governor’s hands.

“We realize that Governor Crist is politically the most powerful man in the state and we ask for him to make the right choice for the citizens of the state.”

But, hedging her bets, Kathy Fain’s new bill boards offer great rates on auto insurance, but there’s no mention of homeowners.

The Office of Insurance Regulation has told the governor the legislation could put many of the 40 new companies writing insurance in Florida at a disadvantage. So far, the governor has sent signals he is leaning toward a veto. He has until June 27th to act.


Latest Comments

Posted by: Anonymous on Jun 24, 2009 at 08:55 AM

good luck finding a company to write both your home and auto insurance. the new homeowners companies do not write auto insurance and the Geckos and Progressives of the world do not write homeowners. You are cutting your nose off to spite your face.
Posted by: Anonymous on Jun 23, 2009 at 08:27 AM

For some reason the Governor and Commissioner McCarty have failed to answer Rep. Proctor's letter about the ability of the so called 40 new companies (if there is even really 40 new companies) to pay claims. I have USAA and they are already limiting their exposure in Florida and rightfully so. I want USAA to stay as they are a great company and if that means paying a little more for my ability to sleep well at night knowing a company like that is covering me, then I am willing to do it. Gov. Crist, stop being a populist who wants to do nothing but run for the next higher office and do what is right. Let me make the choice to stay with USAA.
Posted by: BULL Location: FLORIDA on Jun 23, 2009 at 04:59 AM

MIXBRIX: SO THEY ARE NOT GOOD NEIGHBORS I RECKON. GOVERNOR DONT LET GET OVER ON YA STICK TO YOUR GUNS.
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