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Press Release

District Court Affirms Commissioner McCarty’s Denial of State Farm Rate Increase
Tuesday, July 21, 2009
Contact Info:

Ed Domansky
850-413-2515
Edward.Domansky@floir.com

TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) today announced that the First District Court of Appeal (DCA) has affirmed, without an opinion, the Jan. 12 final order of Commissioner Kevin McCarty. Commissioner McCarty’s order was based on the Dec. 12 recommended order of Administrative Law Judge Daniel Manry of the Division of Administrative Hearings (DOAH). Manry agreed with the Office’s initial Aug. 25 denial of State Farm’s indicated statewide average rate increase of 67.0 percent and its requested increase of 47.1 percent.
 
In his December order, Judge Manry had stated: “State Farm Florida did not show by a preponderance of the evidence that either the indicated rate or requested rate in the rate filing is not excessive, inadequate, or unfairly discriminatory.”
 
“We are very pleased with the District Court’s ruling,” said Commissioner McCarty. “State Farm knew, or should have known, that the filing it made was contrary to the Legislature’s intent and could not be approved. State Farm’s actions suggest that it intended to use the denial of the filing as a pretext for threatening to withdraw from the Florida property insurance market.”
 
The DCA matter is not final until time expires for State Farm to file a motion for rehearing (15 days pursuant to Rule 9.330 Fla.R.App.P.) and the disposition of such motion is filed.
 
Issues with State Farm’s proposed withdrawal plan still remain unresolved. Both the Office and State Farm officials are continuing discussions, but the DOAH has set a hearing to begin Oct. 12.
 
A complete chronology of the State Farm matter is available on the Office Web site: http://www.floir.com/SFChronology.aspx
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Contact Info:

Ed Domansky
850-413-2515
Edward.Domansky@floir.com

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. The Office protects Florida consumers through regulatory oversight of: insurance company solvency, policy forms and rates, market conduct performance and new company entrants to the Florida market. For more information about the Office, please visit www.floir.com. ​

 

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