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State Farm forms homeowners insurer

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State Farm forms homeowners insurer

State Farm MutualAutomobile Insurance Co. has formed Dover Bay Specialty Insurance Co.,a Bloomington, Ill.-based domestic surplus lines insurer that will offer homeownersinsurance in selected markets on a non-admitted basis.

A.M. Best assigned a financial strength rating of A and an issuercredit rating of "a" to Dover Bay with a stable outlook. It expects thenew company to benefit from the market presence and exclusive agency force of theState Farm Group.