Blame it on hurricanes if you want, but State Farm can’t seem to stop riling up southern insurance commissioners.
In the latest duel, Mississippi Insurance Commissioner Mike Chaney turned down a State Farm filing that would have raised rates for this gulf state’s three coastal counties by a whopping 45 percent. The increase seems a bit excessive when people’s incomes, at least according to the federal government, haven’t risen at all.
Of course those same Mississippi counties were whacked by Hurricane Katrina in 2005, which caused more than $40 billion of damage in Florida and Mississippi, and devastated New Orleans as well.
Still, the specter of raising rates by almost half caused Chaney to go into anger management mode. “I am not going to approve the present filing,” he told Insurance Journal, saying it was riddled with “serious issues.” He added that he didn’t like the fact that the country’s largest home insurer didn’t want to write new coastal business, its mandatory 5 percent storm deductible, and its failure to offer reductions if residents made their homes more storm-worthy.