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“”Good Neighbor”” Moving Out Of State

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One of the nation´s largest home insurers will stop offering homeowner policies in California because the cost of pay outs has surged over the last two years. Officials with State Farm Insurance Company say it will no longer accept new clients in the state as of May First. But existing customers will still be covered.

The changes won´t affect the company´s auto insurance business in California. The Bloomington, Illinois-based insurer says while the number of claims have not increased, the cost of the claims have. The company reported a net loss of five billion in 2001.

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