From The August Capitol Report;

In the wake of OIR’s denial of their request for a 47% rate increase, State Farm appealed to the agency to allow them to reduce customer discounts for things like installation of home security systems, maintaining both auto and home policies with State Farm, and hurricane mitigation.  In its first victory in the battle with OIR, State Farm was granted the ability to remove some of these discounts.  Starting in November of this year, the company will be allowed to eliminate the multi-policy discount and other non-required discounts.  However, the company must still offer the discounts for hurricane mitigation, which are required by law. 

The elimination of these discounts does not change the company’s plans for withdrawal.  Negotiations between OIR and State Farm on the withdrawal plan are ongoing and the administrative hearing planned for October is still scheduled.

We do not expect a veto override, although work is underway to develop legislation that will provide rate relief to insurers which may be acceptable to Governor Crist.  NAIFA Florida is working on that effort, and will keep you informed.

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