Article: State Farm to Shift Florida Clients to New Division.

Knight Ridder/Tribune Business News

Feb. 17 -- State Farm, the biggest homeowners' insurer in the country, is shifting its 1.2 million Florida customers into a new subsidiary called State Farm Florida, repeating a move made by Allstate, the nation's second-largest insurer, two years ago.

People holding State Farm Fire and Casualty Co. policies are being notified that by May 1 they must switch to State Farm Florida or find a new insurance company. No other option is available. The parent company eventually will cease doing business in Florida.

Company officials and state regulators say the new subsidiary -- capitalized with $600 million, with a ...

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