State Farm clients needn't panic yet

When Gov. Charlie Crist rejected a bill Wednesday that would have let national companies charge whatever they wish for property insurance in Florida, he said that it lacked enough consumer protections. That veto, however, ensures that State Farm Florida will abandon the state's property insurance market, company officials said. What happens now for State Farm's policyholders? Nothing - yet. Early this year, after Insurance Commissioner Kevin McCarty rejected the company's request to raise its rates 47 percent, State Farm announced its decision to leave. The company submitted an exit plan, which McCarty rejected, calling it "hazardous" for policyholders. The insurer then filed an appeal with the state Department of Administrative Hearings and still is negotiating with McCarty on a withdrawal strategy. Until the litigation or negotiations conclude, the company cannot take any action to withdraw.

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