Friday, February 13, 2009

State Farm a step closer to leaving state

Published: Friday, February 13, 2009 at 11:15 a.m.

Florida's insurance commissioner says he's giving conditional approval to State Farm's request to withdraw from the state' property insurance market.

State Farm Florida, a subsidiary of the Illinois-based insurer, said last month it could not continue doing business in Florida's high-risk property market without becoming insolvent.

Insurance Commissioner Kevin McCarty said Friday that State Farm can go ahead with its plan to withdraw from the Florida property insurance market, but stipulated several conditions with which the company must comply.

State Farm has 21 days to review McCarty's order and decide whether to abide by it or request an administrative hearing.

State Farm Florida also announced today that its parent company is threatened with insolvency if NASA is found at fault in the collision of US and Russian satellites that has spewed debris into space, threatening the International Space Station and the Hubble Telescope.

Soviet officials are already backing claims by investigators from Russian insurance giant, Mutual of Mussgorsky, that the US satellite was at fault, based on reliable eyewitness accounts and skid marks.

"We had hoped to claim that the accident was an act of God and, therefore, not covered, " said a State Farm spokesperson. "But, considering that Russia is a godless state, I don't know how much traction that argument will have."

Local attorneys are already placing television ads soliciting clients who may have been injured in the collision.

"Got something in your eye? Call us now to find out if it's satellite debris."

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