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SALT LAKE CITY (KSL News Services) -- As insurance companies calculate the damage from hurricanes Katrina and Rita, residents of the Utah might be wondering if their insurance premiums will go up in order to cover the costs of the storms.
State Property Casualty Insurance Division Director Brad Tibbits says insurance premiums are based on individual states and the losses that happen in each state and not what happens around the country. “Insurance premiums in Utah are likely not to be affected,” he says.
He says what happens in Louisiana should stay in Louisiana. “They take the experience based on the homeowners and automobile and all that and separate it out and use that as a basis to develop the rates in a particular state.”
Tibbits says when there is a large loss in one state, other states usually don't have to pay to make up the difference.
(Copyright 2005 KSL NewsRadio)
