The company known as State Farm in Florida is not actually the Illinois State Farm corporation. The Illinois State Farm corporation owns a portion of the Florida State Farm corporation and may own all of it, but the Florida State Farm corporation is separate and distinct from the Illinois State Farm corporation. I doubt that the Florida State Farm corporation is an "admitted" company, but rather a Lloyd's company.

Couple the state of the economy with Florida's hostility to any insurance entity, from adjusters, thru companies to re insurance so it is not difficult to understand State Farm's decision.

Sure am glad I do not have any financial interests in Florida.

Chuck, You are correct on the distinction between SF Mutual that is out of Bloomington, IL and SF of FL which is based out of a city in FL. I would tend to agree on the admitted vs non admitted basis as most of these locally incorporated are set up that way for places like FL and TX.  Back subsequest to the 4 in 04 SF of FL had severe losses and ended up having to borrow $ from SF Mutual something to the turn of $750,000,000 to maintain their claims paying ability and to stay in business.  It is my understanding that the argument that they have with the state is they need rate increases to be able to maintian claim paying ability, be able to show a profit, and to work on pay off of the borrowed $ still on the books from the 04 storms.  A lot of people look at this as the big SF doing all of this when they have been making $, but don't comprehend that it's SF of FL.

If it is like State Farm of Texas it is a wholly owned subsidiary of State Farm Mutual. In reality State Farm Fire and State Farm Life are also separate companies wholly owned by State Farm Mutual Automobile Company. So, in all likelihood State Farm of Florida and State Farm Mutual are one and the same.

SF withdrew from all costal counties a year ago. They want a rate increase and are at odds with the DOI. It could be a tactic to get the increase.
David Bean; FL resident

I think that SF should be allowed to pull up stakes and leave.....as a matter of fact, the more the merrier.....at some point, the lawmakers would have to realize that they can not mandate Insurance Companies in the State to be a "Maintenance Policy" and /or a "Give-Away-Program"........Florida companies have a tough time denying claims righteously and the State looks a Blind eye at the Corrupt PA's, insureds and attorneys.......it is unbelievable what goes on.......the "Big Bad Insurance Company" mentality has got to stop.......we can not even pay ACV on an HO-3 policy....full RCV up front and now they are pushing for OH&P up front......
Our company is still getting NEW HURRICANE WILMA CLAIMS WEEKLY---That's right and Wilma was in October of 2005.......Amazing.....
Anyone whom has handle a property claim in South Florida realizes what a cesspool that area is for claims handling......

But Joe, if they had to pay full RCV upfront, then the PA's wouldn't have a way to make their easy money and GC's wouldn't have a way to refund the policyholder their deductible anymore.  How about the one where the policyholder decides to switch to the lowest bidder after their claim's been paid.  Pardon my satire, but if that statute changes, then policyholders would no longer be able to make their money back after paying all those hefty premiums in years past...

 

I agree.  The State of Florida has the pendulum swung and stuck in a terribly unfavorable side which has a highly disoriented perspective of what the insurance policy was designed to do- restore to pre-loss condition.  It's sad that people today have the strange notion that RCV is pre-loss condition and they're entitled to whatever profit they are able to cleverly manipulate out of their claim settlement. 

 

I suppose they could always go back to selling HO2 policies en-masse and disallow the purchase of RC benefits?  Perhaps they could just sell insurance as a non-admitted carrier?

 

IMHO, the fact that Florida is trying to exert this much control over a two year bail-out plan is identical to the control that our national government is exercising over the auto industry.  If you have a bad business model, then let the business make the necessary changes they need to make before they continue to bleed out profusely.  The US Government needs to let the big three go into bankruptcy and FL needs to let State Farm move somewhere else.  In capitalism, you can't have all good years- it takes a few nasty years and/or growing pains to create hefty returns and a higher net growth. 

 

I bring in the auto industry parallel just to show that my points are not so much pro-carrier as they are to demonstrate the un-American steps that FL is taking.