Louisiana Insurance Commissioner Jim Donelon has rejected State Farm's request for a statewide 14.3 percent homeowners rate hike and approved a reduced rate increase for Louisiana Citizens Insurance Corp., the state's last resort insurer.
State Farm spokeswoman Molly Quirk says the company is still in talks with the Louisiana Insurance Dept. in order to make its case for the requested rate increase, which was filed in order to "move toward rate adequacy."
The conversations include the company's use of catastrophe models in calculating rates. Quirk says State Farm uses hurricane models from all three modelers (Risk Management Solutions, AIR Worlwide and EQECAT).
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