State Farm Insurance Co. told the Louisiana Department of Insurance that it will not write new insurance policies for homeowners south of Alexandria, La., an article in The Greater Baton Rouge Business Report said Tuesday.
Processing Content
According to the article, James J. Donelon, the department's commissioner, said that State Farm's decision was unrelated to the Gulf Coast hurricanes and that the insurer simply does not want its market share to become too large.
State Farm covers about a third of homeowner insurance policyholders in Louisiana, the article said.
Alexandria is about 225 miles from New Orleans.
State Farm did not return calls to American Banker. A spokeswoman for the commissioner would not confirm the report.
