February 16, 2007, Bloomington, Illinois -- Today, Mississippi Attorney General Jim Hood proposed legislation to require State Farm to continue writing new homeowners and commercial property insurance in the state. State Farm responded by calling Hood’s proposal a disappointing response to what was a difficult business decision, adding that it underscores the legal and political challenges faced in Mississippi.
“We’re not trying to pick a fight, we are simply not in a position to accept additional risk that new policies would pose in the current business and legal environment,” said Senior Vice President Bob Trippel.
The Company said it didn’t come to the decision this week lightly. State Farm officials said that they thought the decision struck the right balance between serving the interests of current customers and not taking on additional risk in an uncertain environment.
While State Farm Fire and Casualty Company has suspended the writing of any new homeowner and commercial policies in Mississippi, it still has more than 30% of the homeowners’ market and State Farm agents continue to write new auto insurance policies (through State Farm Mutual Automobile Insurance Company) and provide access to a wide array of financial and banking services.
“We must be able to rely on our contract terms, charge an appropriate premium and manage our exposure so that we can keep our commitments to our policyholders. However, today’s actions show just how unpredictable and untenable the current environment can be,” Trippel added.
About State Farm
State Farm® insures more cars than any other insurer in North America and is the leading U.S. home insurer. State Farm's 17,000 agents and 68,000 employees serve over 75 million auto, fire, life and health policies in the United States and Canada, and more than 1.6 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No.22 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca™.