OIR Subpoenas State Farm, Issues Notice of Intent to Disapprove

The Florida Office of Insurance Regulation (“OIR”) subpoenaed State Farm Fire and Casualty Company and State Farm Florida Insurance this week to appear and testify on August 14, 2007 regarding a variety of matters, including State Farm’s non-renewal rule and their decision to withdraw from the condominium association line of business, and the impact these decisions had on their recent rate filings. 

The subpoenas are attached for your review.

The OIR also issued Notices of Intent to Disapprove to State Farm Florida Insurance Company a regarding its recent homeowners’ multi-peril and mobile homeowners multi-peril rate filing.

The OIR stated that State Farm’s reinsurance premium used to calculate private reinsurance cost is not consistent with premium contained in its actual reinsurance contract, and that the company did not provide support to account for the difference.

Calling the proposed rates “excessive” and “not justified,” the OIR indicated that based on the information in the filings, the rate reduction should be at 11-12% and directed State Farm to make a new filing within 30 days of the Notice.

Both OIR Notices of Intent are attached for your review.

Should you have any questions or comments, please do not hesitate to contact this office.