Posey statement on State Farm returning $120 million to customers

Thursday, September 11, 2008

For Immediate Release

Contact:  Chris Hill

P (321) 254-6282
F (321) 242-6280

Posey statement on State Farm returning $120 million to customers

Melbourne, FL - State Farm Florida will give $120 million back to current and former hurricane policyholders who didn’t receive or weren’t told they could get a discount for making their homes more resistant to wind damage.  State Insurance Commissioner Kevin McCarty on Tuesday ordered the company to issue credits or refunds averaging $1,225 and pay a $1 million penalty.

Senator Posey, who helped craft the legislation as Chairman of the Banking and Insurance Committee, issued the following statement:

“We enacted this law to make insurance companies disclose all discounts for hardening homes to their policyholders.  Homeowners deserve to be rewarded for protecting their homes.  It is unfortunate that many customers did not receive the discounts they should have when they should have, but this is clearly a case of better late than never.  I applaud Insurance Commissioner McCarty for protecting our citizens and ordering the refunds and credits.  I’d also like to take this opportunity to remind every homeowner who has not already done so to get a windstorm mitigation inspection done on their home.  It will save you money on your property insurance.”

# # # #