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MS Commissioner to State Farm: No Rate Increase Unless You Write On the Coast

Mississippi Insurance Commissioner Mike Chaney has a message for State Farm: "I will not approve the [rate] increase they have submitted to us unless I...
August 12, 2009

Mississippi Insurance Commissioner Mike Chaney has a message for State Farm: "I will not approve the [rate] increase they have submitted to us unless I have a court order to do so." Chaney said a proposed rate hike of 45 percent in three counties in Mississippi is unfair to homeowners if the company does not also write new policies on the coast.

State Farm is pushing for a rate increase on average of 45 percent in the three coastal Mississippi counties. David Majors, a spokesman for the company, said the increase is necessary. "We had to act responsibly and ensure that we have the resources to pay for future loses," says Majors. But, Chaney says it's not fair to homeowners. The company is pushing to raise rates but is unwilling to write new policies on the coast. Says Chaney, "That's just crazy! I'm not going to allow them to do that. I've got to be certain that if they're going to have any increase, they're going to open up and write new business on the Gulf Coast."

State Farm Pushing for 45 Percent Rate Increase (WLOX Channel 13 Biloxi)

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