A request by State Farm Fire and Casualty to increase homeowners insurance rates by an average of 19.1% was rejected by Louisiana’s insurance commissioner.

James Donelon

Jim Donelon called the request “unreasonable,” according to The Times-Picayune (New Orleans), adding that his office usually recommends insurers adjust their requests, but to have an outright rejection is out of the ordinary.

“This is an out-and-out rejection,” Donelon told the paper. “We’re so far apart, we don’t feel like there’s a reasonable chance to compromise.”

The request by State Farm, Louisiana’s largest residential insurer, covering 27% of the market, could have resulted in some policyholders seeing a drop in rates with others seeing a hike by as much as 44%, according to the report.

A representative for State Farm told the paper the rejection was unexpected, but the insurer will continue discussions with the insurance department as it feels the rate filing was “justified and needed.”

The proposed rate hike would have generated $67.6 in additional revenue for the insurer from its Louisiana customers.