Arkansas Insurance Commissioner Mike Pickens announced that State Farm Fire and Casualty Insurance Company would immediately resume writing new homeowner’s policies in the State of Arkansas.
The company returns to the Arkansas market after having ceased writing new homeowner’s coverage on new applicants in June 2002. After that time, the company wrote new homeowner’s coverage only on existing customers who met the company’s underwriting guidelines.
“We are very pleased with State Farm’s decision to return to the competitive market here in Arkansas,” Commissioner Pickens stated. “We believe insurance consumers benefit from having a number of insurers from which to choose when selecting an insurance company. We welcome them back into the market.”
State Farm had placed restrictions on writing new homeowner’s business in Arkansas, and most other states, noting increasing claims cost, operating losses, and inadequate rates as reasons behind those actions. The company also mentioned litigation as a reason for leaving some states. However, in March of this year the company announced plans to sell rental dwelling policies in Arkansas and began at that point to take on new renter’s business.
State Farm cited improved business conditions (stemming from controlled growth), adequate rate adjustments, and improved internal operating efficiencies, as driving forces in its decision to resume writing new homeowner coverage in Arkansas.
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