The Real Deal Miami

Government fueled State Farm mess

February 02, 2009 01:19PM

A law passed by Governor Charlie Crist lies at the root of the insurance crisis created by State Farm’s pullout from the Florida property market. The HB1A law, signed in January 2007, gave regulators more power. The regulators’ crackdown on rising insurance rates helped prompt the largest insurer in the state to ask for higher premiums. When State Farm was twice rebuffed by Insurance Commissioner Kevin McCarty, the company decided to withdraw from the state.