Andrew dislocates Florida's market. (Hurricane Andrew)

National Underwriter Property & Casualty-Risk & Benefits Management, January, 1993 by Mulcahy, Colleen

The dislocation of Florida's property insurance market spurred by Hurricane Andrew is taking its toll on some agency, company and consumer relationships, even as the state creates a new joint underwriting authority to fill the void left by shell-shocked carriers. Most recently, State Farm agent Michael Hartman of Lake Worth, Fla., filed suit against his company for placing caps on agents' monthly production of new homeowners business and related fire coverages, including commercial coverage.

Those caps, which total $750,000 per month in most regions and run as high as $1.2 million in others, breach the agency contract State Farm has with its producers, who are independent contractors, according to the Dec. 13 action filed in Palm Beach country circuit court....

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