State Farm (the parent) is A++ rated and has a 98 comdex.
CA SF Demands 22% Rate Hike
- Thread starter somarco
- Start date
- 2,507
Yep - and having all the policies in one states on one corporate entity gives you a new problem.... "Concentration Risk"
And technically an admitted insurer does not go BK - they go into receivership.
But yet they own a entity- in a ""dire" financial situation" that [i think] is a B rating and is loaded with LA wildfire claims.... and their UW model may be broken. On top of all that the FAIR plan... may not have enough money to pay out claims and may have the ability to assess member insurers [who SF is the largest of] fees.
Sort of makes you wonder what they look at in that A++ rating?
I think it means what you and @ehall2 were pointing out before.
That the parent can just walk from the subsidiary with no real ramifications.
- 5,293
Only way to get carriers to do business in states like CA, FL, NY.
- 2,507
Yah no problems there - no reputational risk issues either. They are a good neighbor, except one of their offsprings.
That's why you have to name them differently like in NY (not the reason why this exists but it's still funny).
If William Penn went out of business, who cares? It's not like they're called Banner General or something.
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tikibarrister
Guru
- 527
What is a typical rate?
closer to 12%
- 2,507
State Farm has admitted on its own website - in a response to Lara's denial of a rate increase that "With further capital deterioration as a result of the wildfires, additional downgrades could follow. If that were to happen, customers with a mortgage might not be able to use State Farm General insurance on the collateral backing for their mortgage. "
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Pft good thing that's not important. Who needs an insurer providing the collateral backing for their mortgage? Insurance is just a big ol scam anyways. State Farm? More like Scam Scarm
