State Farm Seeks 47 Percent Increase

TALLAHASSEE, Fla. (AP) - Florida's top consumer advocate says
that State Farm can't justify a 47 percent average property
insurance rate increase it wants for 1 million customers.
Top company executives said Tuesday they need higher rates to
cover future hurricanes and to make up for money they are now
giving customers who add hurricane-resistant shutters.
But state insurance regulators grilled State Farm officials at a
hearing over their numbers and how much profit the company's
national parent is making.
Florida's insurance commissioner can deny the rate hike - which
is as high as 88 percent for some coastal counties.
Company officials told regulators they were dropping thousands
of additional policies in Florida, but then State Farm officials
said this was a mistake.

(Copyright 2008 by The Associated Press. All Rights Reserved.)