Florida Office of Insurance Regulation Approves Elimination of Some State Farm Discounts; Mitigation Mandates Unchanged
Aug 6, 2009
The Florida Office of Insurance Regulation (“OIR”) has approved the elimination of some State Farm Florida homeowners insurance discounts as requested by the company in its recent rate filing. The overall premium impact of the approved changes to the rating plan is 28.4 percent.
However, State Farm Florida’s request to reduce existing discounts involving mandated mitigation credits was not approved.
To view a letter to State Farm Florida from the OIR, click here.
Insurance Journal media coverage of the rate filing approval/disapproval is reprinted below.
Should you have any questions or comments, please contact Colodny Fass.
State Farm Florida Can Scrap Some Discounts But Not Mitigation Credit
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 because these are required by law.
The Florida Office of Insurance regulation has approved a State Farm filing to eliminate discounts for having more than one policy with the company, for installing home alert systems, for also having an auto policy with the company and for not having filed a previous homeowners claim or record.
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.
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