Utility Rating Plan (URP)
- The URP is a system of ratings that provides discounts and surcharges for homeowner policies. State Farm based the URP on the home's electrical system.
Minnesota Department of Commerce
- Minnesota's Department of Commerce - Insurance Division investigated State Farm for 18 months for violating state laws. In the investigation, the department claimed that State Farm's URP was based on the age of the home, not the age of the electrical wiring as claimed by State Farm.
- In Minnesota, State Farm agreed to continue the discount but stop surcharging policy holders. Homes that are 40 years and older would have their premiums reduced by 3 percent to 18 percent once the surcharge is removed. Also, if State Farm agrees to establish another URP that involves surcharges, State Farm must comply with Minnesota law. State Farm also agreed to pay $75,000 in investigative costs.