Wednesday, February 14, 2007

I saw this coming

It was just a matter of time before insurance companies started getting out of states where the companies were forced to cover losses for which they did not collect premiums.

State Farm announced today that they are done in Mississippi.
"It is no longer prudent for us to take on additional risk in a legal and business environment that is becoming more unpredictable," Bob Trippel, senior vice president of the largest home insurer in the United States, said in a statement.
"Current legal and business environments ... are becoming untenable," said Trippel in a letter to Mississippi Insurance Commissioner George Dale

Insurance companies said the same things as they were getting out of California after the state decided that all homes were to be insured at replacement cost, even though they were not paying for it (and were grossly underinsured).

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