State Farm Customers Panic
Feb 17, 2009
WCTV, Tallahassee--February 16, 2009
The Chief Financial Officer’s hotline received 170 calls from State Farm customers Friday afternoon. More State Farm customers were on the line Monday morning.
“They”re concerned; they”re worried about going to another insurance company,” says Tammi Torres, the Consumer Affairs Director.
What sparked the panic was an announcement Friday that State Farm must surrender its certificate of insurance within 30 days.
Insurance Commissioner Kevin McCarty explained the order, “This does not, in any way, jeopardize the policy holders in the state of Florida.”
Even with the order, State Farm customers will have at least six months and perhaps up to two years to find replacement coverage.
Policy holders should know when their policy expires and begin looking for that coverage now.
State Farm agents continue to be told by the company not to talk.
Governor Charlie Crist also says there is no need for panic.
Crist says, “There shouldn”t be panic among those who may have had State Farm policies. They’ll be a period of time within reach that they will be turned over to additional companies. There’s 40 new companies that people can look to for property insurance.”
State Farm has about two and a half weeks to decide if it will challenge the order, especially the condition that it’s agents be allowed to write homeowners policies for other companies.
Under the Insurance Commissioner’s order, if you find an insurance company you like, State Farm has to let you go and give you a refund.
You can call the state at 1-877-693-5236.