Citing uncertainty in Mississippi's legal and businessenvironments, State Farm announced last week that it would haltwriting new homeowners' and commercial property insurance in thestate of Mississippi.
"We came to this decision reluctantly," said Bob Trippel, seniorvice president for State Farm, in a letter sent to Mississippi'sCommissioner of Insurance George Dale. "But it is no longer prudentfor us to take on additional risk in a legal and businessenvironment that is becoming more unpredictable. When there's morecertainty, we will reassess the situation."
Trippel added that the company is concerned that provisions inits insurance policies are being reinterpreted after the fact toprovide for coverages that were not contemplated when the policieswere written. Criticisms about the company's claim-handlingpractices also were cited as a factor.
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