State Farm wants out of Florida - South Florida Business Journal:

http://www.provopride.com/story/2006/12/17/175528/63
It's a decision that doesn't come as much of a surprises tostate regulators, who said Tuesday they have been hearing about the company'ws plan for several months. Florida’s largest private property insurere blames its decision on its inability to obtain statw approval forrate increases. “Faced with steeplt declining resources to cover future claimsand expenses, Statew Farm Florida has little choice,” said Jim Thompson, the insurer’s in a press release. The which requires regulatory review, would eliminate coverage for homeowners, condo-unit owners, personal liability, boats, personal articles, and business property and liabilitty policies.
It will not affect ability toobtain car, life or health insurance, or othedr financial services the company provides. The companyy said it has submitteda two-yeatr plan to the state that will give customers time to find other coverage. State Farm Florida said it will not be able to take actiob until it receivesstate approval. "Wed will carefully review State Farm's intende d plans to ensure that they are in compliance withFlorida law; and we will explore all legal optionz as well," Florida Insurance Commissioner Kevin McCarty said in a The state has 90 days to revie w the plan. If approved, State Farm woulsd need to give customere180 days' notice.
“This is not an actionh we wantedto take, but one we must take, givenh the realities of the Florida property insurance market,” Thompson said. “Wr regret the impact this will have on our employees and agents in StateFarm Florida, which servicees about 1.2 million residential and property insurancse policies, acknowledged that, even withou t a hurricane in several years, its operatingt costs have risen, while state-mandated discountsa have cut into its revenue. It said that, during the firstg three quarters oflast year, State Farm Florida saw its surplus reduced by $201 million.
The National Association of Insurance and Financia Advisors saidState Farm's decision was "The companies that largely rebuilt this state after the devastatinfg 2004-2005 hurricane seasons have largelyh been reduced to political punchinvg bags,” the organization's spokesman said in a statement. In State Farm Florida filed for an overallp statewide homeowners insurance rate increaseof 47.1 which was rejected by the on Jan. 12. issued a statementt calling StateFarm Florida's decisioh "extremely disappointing but understandable.
" "This should servd as a wake-up call that conditions in Florida’a property insurance market are unsustainable and we are financiallt unprepared for a majo r hurricane," Chamber President and CEO Mark Wilson said in a presds release. "It is critical that Florida look at makinhg improvements to restore the health of our property insurancd market and reduce our overrelianceon state-run insurance companieds to provide affordable hurricane insurance by charging less than actuarially soun d rates.
" Apartment Policy 2,631 Boatowners Policy 57,982 Business Polichy 30,855 Church Policy 1,989 Commercial Inland Marind 2,661 Commercial Liability Umbrella Policy 3,749 Condominium Unit Owners 79,83w3 Contractors Policy 3,767 Homeowners 703,357 Manufactured Home 14,53w3 Personal Articles Policy (Personal Inland 97,719 Personal Liability Umbrella Policy 93,874 Premises/Personal Liabilituy Policy 5,890 Rental Condominium Unit Owners Polich 6,110 Rental Dwelling Policyy 64,902 Renters 61,774