Florida Insurance Commissioner Kevin McCarty (McCarty) announced on Thursday January 29, 2009 that he has issued a subpoena seeking detailed information from State Farm Florida Insurance Company (State Farm Florida) regarding the company’s Florida property insurance policyholders. McCarty’s subpoena follows in the wake of State Farm Florida’s January 27, 2009 announcement that it is pulling out the Florida property insurance market (as reported here).
Issued pursuant to section 624.430(2), Florida Statutes, the Florida Insurance Code section governing withdrawal of an insurer or discontinuance of writing certain kinds or lines of insurance, the subpoena is part of the Florida Office of Insurance Regulation’s (FLOIR) review of the withdrawal plan, which State Farm Florida submitted on January 27, 2009. McCarty requested the policy holder name and address, the policy type, policy limit, and premium information for every State Farm Florida policy.
“We need to fully understand all the potential risks, so that we can properly evaluate State Farm's withdrawal plan. As we told State Farm officials Tuesday, we intend to do everything we can to help facilitate a smooth transition of their policyholders, if their withdrawal plan is approved. Understanding how the company's statewide risk is spread will help us in working to find other companies that might be willing to write policies for current State Farm customers.”