Miss. AG seeks legislation on State Farm

AP via Yahoo! ^ | 02/16/07 | AP

[joebuck]

"..blocking State Farm Insurance Cos. from refusing to write new homeowners and commercial policies in the hurricane-battered state."

Couldn't they get around this by agreeing to write the homeowner policys but charging a premium of one million dollars a quarter, minimum?

[Brilliant]

They also regulate the price.

They are doing the same thing here in Fla. I don't think that it will hold up in the end, constitutionally, though, unless the penalty for violating the law is designed just right.

Here in Fla., one of the penalties for violating the law is that you won't be allowed to issue auto or life policies. Basically, you've either gotta issue all lines of insurance coverage, or you can't be in the state at all. I think that alone might pass muster, but once you start imposing fines, etc., I think you're walking on thin ice.

[Brilliant]

Exactly. There is a high casualty risk for living on the beach. What they need to do is give ins. cos more freedom to adjust their rates to those casualty risks.

[cincinnati65]

The concept of insurance is that the insurance companies take premiums for years and years and years, and when you FINALLY have a loss, they seek every way possible to minimize their payout to you.

I've heard many stories from Mississippi about the whole flood damage vs. wind damage shinola the insurance companies are playing, and it is shameful.

State Farm has been pulling this stuff in Mississippi for years. They only seem to do business when it's "convenient" for them.