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Donelon Rejects State Farm's Homeowner's Rate Increase

State insurance regulators have rejected a request by State Farm Fire and Casualty Co. to raise homeowners' rates by 16.6 percent.

The rate revision would have affected more than 300,000 policyholders.

Insurance Commissioner Jim Donelon said Monday he declined the company's request after a review found the rate revision not to be actuarially justified.

State Farm spokesman Gary Stephenson says they're disappointed by Donelon's decision. He says the company will continue to work with the department to find a resolution.

The company's last rate request of 7.8 percent was implemented on Feb. 15.

State Farm is the largest homeowners policy provider in the state. As of December, state officials said the company had a market share of 28 percent of all Louisiana homeowners' policies.

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