For the fourth time in three years, Louisiana’s largest insurer of homes is asking for a rate increase that, if approved, could raise homeowners', condominium and renters’ insurance premiums to an average of 26.7 percent higher than they were in 2008.

Associated Press business writer Alan Sayre reports that State Farm is asking the state Department of Insurance for an 8.5 percent average increase on 301,000 policyholders statewide. The rate hike would mean an additional $32.7 million a year in premium payments.

The request from State Farm comes only three months after state Insurance Commissioner Jim Donelon denied the company’s request for an average 14.3 percent increase:

Insurance companies are not granted rate increases based upon prior losses, such as damage from four major hurricanes that have hit Louisiana in recent years. Instead, the rates are supposed to be set on projections of future losses using complicated mathematical models.

 State Farm did not provide a breakdown of how policyholders would be affected in various parts of the state, citing a law keeping that information confidential while the insurance department is considering the rate increase. Typically, a homeowner’s rate increase package includes increases for some portions of the state and decreases in others.

The company received a 9.9 percent increase last year after requesting 19.1 percent. In 2009, State Farm received an 8.3 percent increase after requesting 13.7 percent.

Read more here.

To post a comment, please log into your IND account. If you do not have an account, click the "register" button to create one. Facebook comments can be used as an alternative to creating an account at theIND.com.

Loading
Chart
ABiz Stock Watch
o Home Bancorp 22.40 ▲0.08 (0.36%)
o Frank's International 23.15 ▲0.32 (1.40%)
o IberiaBank Corp 65.35 ▲0.04 (0.06%)
o LHC Group 21.62 ▲0.09 (0.42%)
o MidSouth Bancorp 18.74 ▲0.19 (1.02%)
o Petroquest Energy 6.72 ▲0.19 (2.91%)
o PHI Inc. 38.46 ▲1.41 (3.80%)
o Superior Energy 35.55 ▼0.06 (-0.17%)
o Stone Energy 40.72 ▲1.08 (2.72%)
o Teche Holding 71.82 (%)
o Facebook Inc. 69.27 ▼0.13 (-0.19%)
o Twitter Inc. 37.65 ▼0.40 (-1.05%)
o Gannett 33.25 ▲1.53 (4.82%)
NYSE:HBCP

Home Bancorp

Company ID [NYSE:HBCP] Last trade:22.40 Trade time:3:59PM EDT Value change:▲0.08 (0.36%)
NYSE:FI

Frank's International

Company ID [NYSE:FI] Last trade:23.15 Trade time:4:01PM EDT Value change:▲0.32 (1.40%)
NYSE:IBKC

IberiaBank Corp

Company ID [NYSE:IBKC] Last trade:65.35 Trade time:3:59PM EDT Value change:▲0.04 (0.06%)
NYSE:LHCG

LHC Group

Company ID [NYSE:LHCG] Last trade:21.62 Trade time:3:59PM EDT Value change:▲0.09 (0.42%)
NYSE:MSL

MidSouth Bancorp

Company ID [NYSE:MSL] Last trade:18.74 Trade time:4:01PM EDT Value change:▲0.19 (1.02%)
NYSE:PQ

Petroquest Energy

Company ID [NYSE:PQ] Last trade:6.72 Trade time:4:02PM EDT Value change:▲0.19 (2.91%)
NYSE:PHII

PHI Inc.

Company ID [NYSE:PHII] Last trade:38.46 Trade time:3:59PM EDT Value change:▲1.41 (3.80%)
NYSE:SPN

Superior Energy

Company ID [NYSE:SPN] Last trade:35.55 Trade time:4:08PM EDT Value change:▼0.06 (-0.17%)
NYSE:SGY

Stone Energy

Company ID [NYSE:SGY] Last trade:40.72 Trade time:4:00PM EDT Value change:▲1.08 (2.72%)
NYSE:TSH

Teche Holding

Company ID [NYSE:TSH] Last trade:71.82 Trade time:4:03PM EDT Value change: (%)
NYSE:FB

Facebook Inc.

Company ID [NYSE:FB] Last trade:69.27 Trade time:4:00PM EDT Value change:▼0.13 (-0.19%)
NYSE:TWTR

Twitter Inc.

Company ID [NYSE:TWTR] Last trade:37.65 Trade time:4:00PM EDT Value change:▼0.40 (-1.05%)
NYSE:GCI

Gannett

Company ID [NYSE:GCI] Last trade:33.25 Trade time:4:01PM EDT Value change:▲1.53 (4.82%)
Advertisement

Read the Flipping Paper!

Click Here for the Entire Print Version of
ABiz
 
Advertisement
Advertisement