BATON ROUGE, La. (AP) — Insurance Commissioner Jim Donelon has rejected a request by State Farm Fire & Casualty Co. to introduce a regional deductible for homeowner's coverage.
Donelon tells The Advocate (http://bit.ly/V3hIjb ) State Farm, Louisiana' largest insurer, with more than 300,000 homeowner's policies or 29 percent of the market, is the first company to request a regional deductible plan.
The Insurance Department said a regional deductible request must include a business plan that meets 10 criteria, including a plan to write new business in the parish where the regional deductible would be implemented.
In a rejection letter to State Farm dated Nov. 9, Donelon said State Farm's plan made it clear the company did not intend to write any new business in the area where the regional deductible would be put in place.
Information from: The Advocate, http://theadvocate.com