State Farm leaves Florida

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PostPosted: Wed Jan 28, 2009 12:22 pm   Post subject: State Farm leaves Florida  

See THIS LINK.



Like a fair weather neighbor, State Farm's NOT there!



I'll never do business with this jack assterisk company EVER again.



Good riddance!



Quote:
State Farm has been the largest private property insurer in Florida, so when it leaves, thousands of homeowners and other policyholders in the state will have to look for coverage elsewhere.



The withdrawal plan includes coverage for homeowners, renters, condominium unit owners, personal liability, boats, personal articles, and business property and liability policies. More than 700,000 homeowners will be affected, State Farm said.


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PostPosted: Wed Jan 28, 2009 12:46 pm   Post subject:   

It is really amazing that only the property and casualty insurance companies are the only insurance companies allowed to quit anytime they so choose.



I think it is really bold or maybe just stupid of State Farm to make the comment that even though they were leaving some 1 Million homeowners out in the cold, it would have no effect on the 3 Million auto insurance policies or the life and health policies.



All P&C companies employ marketing strategies where they will drop their rates significantly in an area just to build a large block of business, but when there are claims, look out!



I think the governor of Florida was right, they will be better off not having the "fair weather good neighbor" State Farm.



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PostPosted: Wed Jan 28, 2009 3:24 pm   Post subject:   

Gary, your point is not missed but I'll ask this... if you operate your business and are loosing money out of your pocket, should you be _required_ to continue your business and loose even more money? Or should we follow the rules of capitalism, which this country operates under, and allow you to stop doing business at your discretion?



Keep in mind that there are still _many_ options for people in Florida to obtain HO insurance.



But also, insurance companies do things like this in order to increase their leverage with the State. SF wanted to increase rates 41% in Florida but the State did not allow it. So SF threatens to pull out and tries to force the State into negotiations. Unions do this as well.

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PostPosted: Wed Jan 28, 2009 4:34 pm   Post subject:   

Quote:
Gary, your point is not missed but I'll ask this... if you operate your business and are loosing money out of your pocket, should you be _required_ to continue your business and loose even more money? Or should we follow the rules of capitalism, which this country operates under, and allow you to stop doing business at your discretion?


tcope, I agree.



What I don't agree with is State Farm being able to cherry pick which forms of insurance they will sell and which they won't.



Although not legal and it would never hold up in Court I would love the state of Florida to tell State Farm and ALL affiliated companies to permanently leave the state of Florida and not write ANY business in this state.



That's my beef.



I'm not disagreeing with your point, I AGREE.


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PostPosted: Wed Jan 28, 2009 4:41 pm   Post subject:   

This _will_ be the States response, more or less. They will eventually come to some type of agreement, as they have always done, and the SF insured's and tax payers in Florida will end up getting screwed one way or another. It's what always happens.

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PostPosted: Wed Jan 28, 2009 5:20 pm   Post subject:   

tcope, speaking strictly as a consumer it's almost not worth it to buy homeowners insurance in Florida anymore.



Paying $250 to $400 per month is not uncommon.



Some people are paying 1/3 of their house payment for homeowner's insurance and seniors who use to pay $60 to $75 per month are now paying the $250 to $400 per month.



There really isn't any answer to our homeowner insurance rates because the math doesn't lie and YES when these hurricanes hit they wipe out everything in their path.



There are two islands close where I live; Honeymoon Island and Caladesi Island. The water that separates the two islands is called Hurricane Pass because the hurricane of 1921 cut the one island in two! Shocked



See pictures in THIS PDF linky.



Quote:
Hurricane Pass was created by the Hurricane of 1921, one of the most severe on record for the west coast of Florida. The comparison of an 1879 nautical chart to a 1926 aerial photo above illustrates the breaching of Hog Island that created Honeymoon and Caladesi Islands.


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PostPosted: Wed Jan 28, 2009 5:50 pm   Post subject:   

Your preaching to the choir, I lived in Tampa for 25 years 9just moved to Utah 2 years ago). I owned a home about a mile north of downtown for 13 years. Though, my HO premium was not as high as some.



Used to own a Hobie Cat and would sail at causeway near Caladesi Island.

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PostPosted: Wed Jan 28, 2009 8:04 pm   Post subject:   

Cool It truly is a small world! Cool





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PostPosted: Wed Jan 28, 2009 8:10 pm   Post subject:   

In the event of property damage caused by a hurricane, there is always a battle over . . .

(1) was the damage caused by the wind?

(2) was the damage caused by the flood of water?



How do you separate the two in a hurricane?



I think the State of Florida has 90 days to approve or disapprove State Farm's plan to pull out their property insurance lines. So, what will happen?



Probably the state will agree on a 25% rate increase, which is probably what State Farm was going for anyway.



I think if State Farm is allowed to leave Florida, they should leave entirely.

No life insurance, no health insurance, no auto insurance, NOTHING!!



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PostPosted: Thu Jan 29, 2009 10:12 am   Post subject:   

Quote:
It is really amazing that only the property and casualty insurance companies are the only insurance companies allowed to quit anytime they so choose.




Does that mean that the life and health carriers are not allowed to quite business when they like? Any special reason for that?



I've also read in this board that when an insurer decides to quite business in a particular area another insurer would take up their existing business and the policy holders have no reason to worry regarding the fate of their policies.

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PostPosted: Thu Jan 29, 2009 10:32 am   Post subject:   

State Farm is now running public relations ads in Florida where they first describe how they will be cancelling homeowners, business, liability, renters, condo and other forms of property insurance and then has the unmitigated audacity at the end of the commercial to say but don't worry about your auto or life insurance those are unaffected.



For State Farm customers...you are paying way too much for your life insurance with State Farm. They ARE NOT competitive with anybody for life insurance.



And let the truth be known State Farm insurance agents are nothing more than EMPLOYEES of State Farm and they have zero insurance experience outside of State Farm.



One of State Farm's new agent hiring requirements is that you DON'T have any previous insurance experience.



And let's talk a bit about how they "prospect" for life insurance, THAT'S WHERE THE MONEY IS in the insurance business. It's by way of auto insurance. Your State Farm agent is literally a clueless clown when it comes to the subject of life insurance but they'll give you a 5% discount on your auto insurance IF you buy their more than double priced life insurance.



Don't be suckered by these gimmicks.



If you have cash value life insurance with State Farm you can 1035 exchange that policy for one with a reputable company and probably just about double the death benefit and the cash value for the same money out of pocket. It's THAT high priced!



Since State Farm wants to pick and choose which form of insurance they will write in Florida I say let's re-write ALL their life insurance business in the state of Florida and leave them ZERO incentive to be in this state.



[explitive deleted] them!

Rhymes with duck.



Evil or Very Mad State Farm Rolling Eyes the neighbor from hell! Twisted Evil



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PostPosted: Thu Jan 29, 2009 10:32 pm   Post subject:   

bandit-baby wrote:

Quote:
Does that mean that the life and health carriers are not allowed to quite business when they like? Any special reason for that?


That's right. Life, health, disability, long term care, annuities, Medicare supplements, etc. policies CANNOT be canceled by the insurance company EXCEPT for non-payment of premium.



Quote:
I've also read in this board that when an insurer decides to quite business in a particular area another insurer would take up their existing business and the policy holders have no reason to worry regarding the fate of their policies.


Not exactly.



You're confusing an insurance company becoming insolvent with an insurance company deciding NOT to write a particular form of insurance anymore.



If State Farm was insolvent the state of Florida would take over the company, attempt rehabilitation, if that doesn't work, sell the block of business to a healthy insurance company while assessing ALL other insurance companies, if needed, to pay claims until the company was sold.



When a company decides NOT to write that form of insurance anymore the policy owners have no recourse.



Property and Casualty Insurance is the ONLY form of insurance whereby the insurance company can cancel your policy for reasons other than non-payment of premium.


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PostPosted: Fri Jan 30, 2009 12:03 am   Post subject:   

The only recourse for many would be Citizens Insurance. But I can't see that they would be able to accommodate such an influx of people.



But FL and SF will come to some type of agreement.

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PostPosted: Fri Jan 30, 2009 6:46 am   Post subject:   

Quote:
When a company decides NOT to write that form of insurance anymore the policy owners have no recourse.




Okay, make sense. Now, I have another question Smile



Would the consumers get back the money that they have paid towards the premium?

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PostPosted: Fri Jan 30, 2009 12:17 pm   Post subject:   

Quote:
Would the consumers get back the money that they have paid towards the premium?


Yes, the unearned portion of the premium.



If you paid annually, which most people with a mortgage do through their escrow, and are paid up for the year State Farm would refund the unearned premium.



Evil or Very MadTwisted Evil Better to dump State Farm sooner rather than later, buy your auto insurance through Amica,... Razz and your life insurance through me! Wink


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