Less than a week after he denied a request from State Farm toimplement a regional storm deductible plan, Louisiana InsuranceCommissioner Jim Donelon shot down an application from the insurerto raise homeowners' insurance rates 16.6 percent.

The insurer could go back to Donelon with an amended filing. Itslast homeowners' rate hike of 7.8 percent was started on Feb. 15last year after its first request for a 14.3 percent increase wasdenied.

State Farm's latest filing for a 16.6 percent increase wouldhave affected more than 300,000 policyholders and added about $71.3million in premiums to the insurer's coffers.

But Donelon says State Farm's “trend selections did not appearin line with actuarial data,” and the filing prompted “concernsregarding the magnitude of the profit provision.”

This is the second time in a week Donelon has said a filing fromState Farm was too inadequate for approval.

Donelon on Jan. 24 declined State Farm's request to increase storm deductibles insome parishes because the proposal “failed to meet the requirementsset forth by law.”

State Farm—which possesses a 29 percent homeowners multi-perilmarket share in the Pelican State, according to SNL Financial—wasthe first insurer to try to take advantage of the 2008 law enactedin the state to allow such a proposal.

In a statement submitted by State Farm spokesman Gary Stephensonvia email, the insurer says it is “certainly disappointed” by therate hike denial.

“Our request for this adjustment is sound,” State Farm says.“The losses and risks from coastal storms are significant. On-goingclaims and perils across the state, such as hail, windstorms, fireand other events, are significant.”