MONTANA COMMISSIONER SAYS HOMEOWNERS INSURANCE RATES LEVELING OFF:

After three years of steep increases, homeowner insurance rates in Montana appear to have leveled off as the economic condition of the industry has improved, state Insurance Commissioner John Morrison said April 15. Insurance companies are no longer plagued by the untimely combination of high losses and low investment earnings that prompted the big premium jumps that began in 2001, he said. The state’s largest home insurers (State Farm, Safeco, Farmers and Allstate) have indicated in filings with Morrison’s office that they plan no rate increases this year, he said. Those four companies account for 55 percent of the homeowner policies in Montana. Morrison, who announced an investigation last June into the large increases, said his office concluded in that process that the higher premiums in 2001, 2002 and early 2003 were in proportion to the financial losses the industry had experienced. But he’s not taking full credit for what he said is a more stable premium picture. “While I believe we were vigilant in keeping a close eye on rates and making sure companies knew we would be demanding in that way, the primary reason for relief in rates at this time is the competitive pressures of the marketplace,” said Morrison, who also is state auditor.