I do not know why the State Farm Florida President would write a letter to Governor Crist telling him State Farm will remain in Florida if Crist signs the bailout bill. Of course it would. What a competitive advantage a few large insurers would have over the rest of the domestic competition.
An Insurance Journal article which discussed the letter noted:
"Florida’s biggest private insurer of property, State Farm Florida, has told Gov. Charlie Crist it would "be willing to re-examine its options" and its decision to leave the state’s home insurance market if he signs a bill on his desk designed to deregulate rates for large insurance companies.
Jim Thompson, president, State Farm Florida, in a letter to Crist dated June 16, stressed that any change in his company’s current plan to leave the state would have to happen quickly due to the insurer’s compromised financial state. Ratings analysts at A.M.Best last week downgraded the insurer."
This is obvious to me. Why else would State Farm have lobbied for the bill?
The only question remaining is whether Crist will sign the bill into law or veto it.
