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Fla. sets tough terms for State Farm exit: commissioner moves to keep insurer from dumping homeowners into state carrier.

Publication: National Underwriter Property & Casualty
Publication Date: 23-FEB-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
FLORIDA INSURANCE Commissioner Kevin McCarty, in a harshly worded order, has told State Farm it can go forward with its plan to exit the state's homeowners insurance market, but only under stringent conditions he has set to protect policyholders.

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The company--which has 1.2 million home and condominium policyholders in the state--will not be allowed to dump its customers on Citizens Property Insurance Corp., the state-ran insurer of last resort, under the order, which also said that State Farm should allow its agents to place polities with other private insurers.

The order called the State Farm argument that it needs to withdraw because it faces the danger of insolvency and inability...

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