Florida Insurance Commissioner Kevin McCarty told the Palm Beach Post that he was "cautiously optimistic" that State Farm will keep at least some of its business in the state, following "intense negotiations" with the company.
In January, State Farm Florida said it was discontinuing coverage in the state, citing a “substantially weakened financial position” directly related to its inability to obtain regulatory approval for what it felt was adequate rates.
The company has nearly 700,000 homeowners’ policies in effect and paid $577 million in property claims in 2008, according to its website.
McCarty told the Post he could envision the insurer maintaining a smaller presence in the state versus leaving the market altogether.
Jim Thompson, president of State Farm Florida, said in a statement on the insurer’s website that the company continues to engage in discussions with McCarty’s Florida Office of Insurance Regulation regarding its withdrawal from the market.
A Dec. 17 hearing is scheduled before the state’s department of administrative hearings to review a withdrawal plan filed by State Farm Florida earlier this year.
“However, we are hopeful that continued discussions with the OIR will result in an amicable resolution, making administrative action unnecessary,” Thompson said in his statement.