State Farm Insurance will stop writing new policies for Mississippi

Citing uncertainties in the Mississippi legal and business environments, State Farm Senior Vice President Bob Trippel recently told Mississippi’s Commissioner of Insurance George Dale that State Farm Fire and Casualty Company will suspend writing new homeowners and commercial property insurance in the state of Mississippi.”We came to this decision reluctantly,” said Trippel. “But it is no longer prudent for us to take on additional risk in a legal and business environment that is becoming more unpredictable. When there’s more certainty, we will reassess the situation.”The Commissioner of Insurance George Dale immediately released a statement on the recent announcement from State Farm, “I regret that State Farm has chosen to make this decision at a time in the state’s Hurricane Katrina recovery process when it is becoming more vital than ever, that policyholders in Mississippi have a viable and affordable insurance market. As I have said over and over again, rebuilding on the coast cannot continue without it.”Dale promised to encourage insurance companies to continue providing affordable and accessible coverage for the citizens.”State Farm’s decision is a stark reminder that the issues brought about by Hurricane Katrina affect not only the coast, but policyholders all across the state,” he said.”State Farm’s actions clearly illustrate the importance of passing the Wind Pool legislation I sent to the legislature in order to help stabilize a volatile insurance market and prevent other companies from making similar decisions.”