Florida Allows State Farm to Scrap Some Insurance Discounts
Aug 6, 2009
State Farm Florida has been given the green light to eliminate some homeowners insurance discounts but the insurer must continue to offer discounts for storm mitigation steps taken by insureds unless it supports that change with more information.
The Florida Office of Insurance Regulation (OIR) has approved a State Farm filing to eliminate discounts for having more than one policy with the company, for installing home alert systems and for not having filed a previous homeowners claim.
The overall premium impact of the approved changes to the insurer’s current rating plan is 28.4 percent, according to the OIR.
However, requested changes to State Farm Florida’s mitigation credits have been disapproved. According to the OIR, while an alternate mitigation credit is allowable under Florida regulations, such credits must be supported by a “detailed study” that State Farm Florida did not include with its filing. OIR said State Farm Florida can refile for consideration of any changes to its mitigation credits.
The approved changes to its discount plan are effective Nov. 1 for new business and Dec. 1 for renewal business.
After being denied what it says are necessary rate increases, State Farm announced plans to withdraw from the state’s property insurance market but its withdrawal plan has not yet been approved.