Winter Haven, Florida, June 24, 2009 – State Farm Florida expressed deep disappointment with Governor Charlie Crist’s veto of House Bill 1171 (HB 1171), the “Consumer Choice Bill.”
HB 1171 was passed by overwhelming majorities in both houses of the Florida state legislature and supported by voters by more than a 2 to 1 ratio according to a poll released by the Florida Chamber of Commerce. HB 1171 would have given consumers more property insurance options and attracted more capital to the Florida market — capital that’s sorely needed to protect homeowners and others against future hurricane losses.
State Farm Florida on January 27 announced its intention to discontinue its Florida property insurance lines. The company and the Florida Office of Insurance Regulation continue to discuss the details of State Farm Florida’s conditionally-approved withdrawal plan.
State Farm Florida’s net worth has declined by about $200 million since the company first requested a rate increase about one year ago. With the company’s financial strength downgraded by A.M. Best just last week, it will move forward with its withdrawal while it is still able to meet its contractual obligations to State Farm Florida’s property insurance customers.
State Farm remains interested in a healthy Florida property insurance market. The company continues to market in Florida other insurance products – from auto to life insurance, and financial services. And, State Farm would like to think someday the state’s property insurance market will once again be more stable and competitive – and that State Farm can once again be a part of it.
Florida Governor Charlie Crist Veto Letter
Chris Neal, Public Affairs Manager at (862) 318-4230.