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State Farm Sheds Some Wind Cover in Louisiana, USAA Plans Same in Mississippi

State Farm Group, the largest insurer in Louisiana by market share, is shedding wind and hail coverage for small commercial properties in coastal areas and...
January 26, 2011

State Farm Group, the largest insurer in Louisiana by market share, is shedding wind and hail coverage for small commercial properties in coastal areas and raising rates by an average of 19 percent. Separately, Mississippi Insurance Commissioner Mike Chaney is planning to meet with USAA Group about its decision to drop wind and hail coverage for some policyholders in three coastal counties in Mississippi.

"Needless to say, I'm disappointed, but not terribly surprised," said Louisiana Insurance Commissioner Jim Donelon, adding that State Farm and other major national carriers have been "strenuously" advocating a federal backstop for coastal exposure, and failing in that effort have been withdrawing from that exposure. In Mississippi, Insurance Commissioner Chaney said he sent a "stern letter" to USAA asking the carrier to cease until "they sit down and talk to us about what they're doing" after the company began notifying policyholders in the coastal counties of Hancock, Harrison and Jackson that it plans to drop wind coverage.

Click here to read Double Whammy (New Orleans Times-Picayune 1/16/11)

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