BATON ROUGE, La. (AP) — State insurance regulators have rejected a request by State Farm Fire and Casualty Co. to raise homeowners' rates by 16.6 percent,
The rate revision would have affected more than 300,000 policyholders and generated an estimated $71.2 million in additional premiums to the company.
Insurance Commissioner Jim Donelon said Monday he declined the company's request after a review found the rate revision not to be actuarially justified.
"There were a number of variables factoring into the decision to deny this request and the actuarial support was lacking, prompting concerns regarding the magnitude of the profit provision," Donelon said in a statement. "Additionally, State Farm's trend selections did not appear in line with actuarial data and that raised additional questions."
State Farm spokesman Gary Stephenson said they were disappointed by Donelon's decision.
"This rate need is a real one. We all know the threat of severe coastal damage is ever present, but the on-going cost of hail, thunderstorm, wind, fire and other types of claims across the state is significant," Stephenson said. "We will continue to work with the DOI to seek resolution to the challenges we all face — as customers, providers, and regulators. Our customers expect State Farm to be strong and able to handle their covered claims when that time comes. That requires that we be responsible in balancing claims costs with premium income as we look forward."
The company's last rate request of 7.8 percent was implemented Feb. 15.
State Farm is the largest homeowners policy provider in the state. As of December, state officials said the company had a market share of 28 percent of all Louisiana homeowners' policies.
Frank’s Casing Crew, now doing business as Frank’s International, will make its final appearance on ABiz’s list of the Top 50 Privately Held Companies in Acadiana this year, and once again, it will likely be at the top with more than $1 billion in annual revenues. The 75-year-old company specializing in tubular fabrication and installation services to the oil and gas industry plans to go public this year.
The defeat, or rather highjacking of House Bill 420 in the final days of this year's Legislative Session, say Reps. Vincent Pierre and Terry Landry, is the result of the propaganda spread by one unidentified local media outlet and an unnamed former state Representative, but nothing to do with the original legislation's lack of checks, balances or details.
He’s a singer. A songwriter. A piano man. A family man. He’s even got his own Wikipedia entry. He’s David Egan. And he knows ancient secrets about the monolithic stones of Stonehenge that he’s not willing to share.