State Farm and the state of Florida have negotiated a settlement to keep the insurance company in the Sunshine State.
Florida Insurance Commissioner Kevin McCarty on Wednesday announced a settlement with the company that includes a 14.8 percent rate increase. State Farm Florida, the state's largest private homeowner insurer, will also be allowed to not renew 125,000 of its 810,000 policies.
The company, a subsidiary of Illinois-based State Farm Insurance, had announced it would withdraw from Florida after McCarty rejected a much larger 47.1 percent rate increase. The company submitted a withdrawal plan in January designed to trigger a two-year process of non-renewing its nearly one million policies in the state.
“I am pleased that State Farm and the Office of Insurance Regulation have reached a settlement to keep the largest private property insurer in our state,” said Florida CFO Alex Sink. “My priority is standing up for Florida’s consumers, and now most Floridians will be able to maintain their current State Farm policies if they so choose. I also am glad that so many Floridians who work as State Farm agents will be able to continue serving their long-time customers.”