Appeals Court Affirms State Farm Denial For Increase
A Florida appeals court affirmed an administrative judge’s ruling that allows the state’s Insurance Commissioner Kevin McCarty to deny a homeowners insurance rate increase to State Farm.
Without comment, Florida’s District Court of Appeals, First District, in Tallahassee, yesterday affirmed the commissioner’s denial. A reverse decision could have increased rates by as much as 67 percent.
In December, Administrative Law Judge Daniel Manry ruled that the insurer had not shown sufficient need for an increase.
In a statement, Mr. McCarty said, “We are very pleased with the District Court’s ruling. 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.”