Reinsurance, which is essentially insurance for insurers, helps drive the catastrophe-prone Florida insurance system.

The company said the move will affect only Farmers-branded policies and will not affect policies sold in Florida by subsidiaries Foremost and Bristol West.

Florida, Louisiana and the other states are challenging Risk Rating 2.0, which changed the methodology for determining flood insurance prices.

United Property & Casualty has faced deep financial problems for months, including announcing in August that it would exit Florida's troubled homeowners' insurance market.

The state's insurer of last resort is a measuring stick for the health of the private insurance market.

The Restoration Association of Florida and Florida Premier Roofing say a requirement for scaling back roof-damage claims is unconstitutional.

In a new report, AM Best pointed to remaining questions about how law changes will affect reinsurance.

The insurance market has faced massive problems during the past two years, with insurers seeking large rate increases and dropping hundreds of thousands of customers because of financial losses.