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State Farm pulling out of Florida
Palm Beach Post ^ | Tuesday, January 27, 2009 | By RANDY DIAMOND

Posted on 01/27/2009 8:44:22 AM PST by Fawn

State Farm Florida is pulling out of the homeowner insurance business in Florida, the company said this morning, in a surprise move that will leave more than 800,000 policyholders without coverage and will cause almost certain turmoil in the Florida insurance marketplace.

"Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice," said Jim Thompson, president, of State Farm Florida. ''This is not an action we wanted to take, but one we must take given the realities of the Florida property insurance market.

"We regret the impact this will have on our customers, employees and agents in Florida," he added.

Thompson said the plan requires regulatory review, and State Farm Florida will not begin dropping policies under the plan until that process is complete. Florida, however, has no law on the books that would prevent State Farm from leaving the state's homeowner insurance market.

State Farm Florida emphasized that it was submitting a two-year plan that seeks to limit disruptions for customers, and if approved, will allow them time to find coverage with other insurers.

State Farm is Florida's largest private homeowner insurer, second only to state-sponsored Citizens Property Insurance Co.

State Farm is also Florida largest automobile insurer with more than 3 million policies. The company says it will continue to offer auto coverage. However, a 2007 state law pushed by Gov. Charlie Crist prevents insurers from offering only auto policies if they offer both auto and homeowners in other states.


TOPICS: Breaking News; Culture/Society; News/Current Events; US: Florida
KEYWORDS: crist; florida; goodriddance; hurricanes; insurance; socialism; statefarm
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To: Fawn

They’re gonna need a new slogan.


101 posted on 01/27/2009 1:39:45 PM PST by Chris DeWeese (http://www.lifeinkc.com)
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To: henkster

Going through that right now, State Farm Claims Office has poor communications, even the local office grimaces when on the phone with them


102 posted on 01/27/2009 1:52:24 PM PST by Son House (Mr. Ă˜bama, Your Tax Increases Are Decreasing Job Opportunities)
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To: danamco
Isn't Senator Bill Nelson, as a former Insurance Commissioner, the culprit to our home insurance problems???

That would be my guess.....but being that he's dumber than a rock he fits in nicely in the Senate.

103 posted on 01/27/2009 1:53:32 PM PST by CRBDeuce (here, while the internet is still free of the Fairness Doctrine)
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To: RandallFlagg; All

It’s not Obama’s face they will fear - it will be his mother-in-law’s!

http://images.google.com/images?hl=en&q=obama%20mother%20in%20law&um=1&ie=UTF-8&sa=N&tab=wi

I especially love this one:

http://www.daylife.com/photo/0gfAbqRdwB6gW


104 posted on 01/27/2009 2:10:39 PM PST by Anita1 ( "Indeed there are those who are last who will be first, and first who will be last." Luke 13:30)
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To: XR7
Buy a house in a filled-in vermin-infested swamp frequented by hurricanes and floods and someone should insure you against loss?

The 'vermin' are mostly located around Tallahassee...so hurricanes hit that area more often than not and USUALLY left us alone here in central florida...'til 2004.

105 posted on 01/27/2009 2:11:17 PM PST by CRBDeuce (here, while the internet is still free of the Fairness Doctrine)
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To: Drango

Considering Florida’s hurricane history, I am amazed any insurance company can make money.


106 posted on 01/27/2009 2:12:52 PM PST by rogator
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To: Recovering_Democrat
Florida means HIGHER rates for everyone in the state ever since Bill Nelson was the Insurance Commissioner. Socialist to the core, and can't speak worth a damn...gave the worst Commencement address ever delivered to those poor UF grads a few years ago. Liberals should be barred from giving commencement addresses!
107 posted on 01/27/2009 2:21:52 PM PST by CRBDeuce (here, while the internet is still free of the Fairness Doctrine)
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To: CharlesWayneCT

The laws don’t make it too risky, they make it too costly.


108 posted on 01/27/2009 2:31:42 PM PST by ConservativeMind (Who is now in charge of the "Office of the President-Elect"?)
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To: WaterBoard

I’ve never understood how people expect to have a poorly-built home survive a hurricane. Of course insurance is going to be high because you have a cr@p home for the wind and water you will likely experience.

I don’t see why people complain about high insurance costs when they live in a hazardous area for the fun it provides.


109 posted on 01/27/2009 2:38:13 PM PST by ConservativeMind (Who is now in charge of the "Office of the President-Elect"?)
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To: RobFromGa
what kind of incentive should government give to a business? why don’t the regular rules of free markets apply here?

No incentive needed...gov't just needs to get out of the way and let the markets function. The regular rules do not apply because government is involved neck deep in the market.

110 posted on 01/27/2009 2:45:35 PM PST by JrsyJack (Oh dem golden slippers!!)
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To: lormand

So, if we have many hurricanes during the next four years, who will they blame?


111 posted on 01/27/2009 2:51:24 PM PST by Loud Mime (Dems: Republicans are enemies - Bush: Democrats are Friends)
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To: proudpapa
When I was in NO volunteering after Katrina, I learned that the locals considered State Farm, Allstate & FEMA to all be four letter words.

That be the same locals that refused to purchase flood insurance despite being told explicitly that homeowners doesn't cover flood damage or the locals with no insurance at all that expect you and I to foot the bill?

Insurance companies are portrayed as the bad guys despite the fact that their aggressive challenging of claims and their restrictive policies are the result of years of claims fraud. Whenever someone speaks of upgrading from the settlement, or adding an extra room with the settlement money, etc they are profiting from an insurance claim that is designed to indemnify, i.e. to make one whole again. Those profits are recovered through higher rates for everyone or stricter settlement practices, there are no free lunches.

112 posted on 01/27/2009 3:06:35 PM PST by JrsyJack (Oh dem golden slippers!!)
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To: Colonial Warrior
typical union shop... 9 people doing what machines can do better.
113 posted on 01/27/2009 3:10:48 PM PST by Chode (American Hedonist -)
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To: Fawn
LIKE A BAD NEIGHBOR: State Farm is ranked 4th worst insurance company for its denial and delay of claim payments (Slow walking and bad faith practices are illegal). State Farm pulled out of New Jersey in the 1990s only to return as if nothing happened. Much to the company's surprise, people were not willing to take them back despite Geico-like promises of "up to 40% discounts".

In other developments, State Farm has made a corporate policy to hire new PPGAs with promises of riches only to over satuarate the insurance markets with excessive agencies and product line. I've heard complaints by the captured agents that State Farm consistenty kicks their legs out by "getting out of the market" every few years/

I'm sure I'll catch hell from the kool-aid drinkers but truth is truth.
114 posted on 01/27/2009 3:11:33 PM PST by egannacht
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To: Fawn

The most significant thing that I note in this article is that Florida has a state-sponsored insurance agency.


115 posted on 01/27/2009 3:39:04 PM PST by austinaero ((More Bark, Less Wag))
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To: henkster

As a note, State Farm has put one totally new roof on our house after a hail storm, repaired our windshields, and also hail damage on vehicles. We have had a second roof repaired, not replaced by State Farm.

I have no doubt about what you say. I am pointing this out to ask why SF doesn’t react in a consistent manner?


116 posted on 01/27/2009 3:45:03 PM PST by austinaero ((More Bark, Less Wag))
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To: mgc1122

“these are people too stupid to recognize economic realities and are just as likely to mandate a repeal of gravity if they think it will get them a vote”

government never learns. They mandated certain health insurance rules in NY that were not economically viable and half the insurers pulled out.


117 posted on 01/27/2009 4:03:48 PM PST by dervish (Gitmo, coming soon to a neighborhood near you)
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To: Reagan Man
http://www.shopandcomparerates.com/HOCompareRates300.htm

Florida State Farm Homeowners are getting hosed. Charlie Crist knows it. He will support legislation to deny this company access to the car ins. market. Look at the rate comparison. Nuff said.

118 posted on 01/27/2009 4:14:18 PM PST by JOLLYDODGER (John McCain - The next great Viagra spokesman.)
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To: conservativebabe

http://www.shopandcomparerates.com/HOCompareRates300.htm


119 posted on 01/27/2009 4:16:06 PM PST by JOLLYDODGER (John McCain - The next great Viagra spokesman.)
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To: Don Corleone

The “failed Obama policies”!


120 posted on 01/27/2009 4:18:49 PM PST by CIDKauf (No man has a good enough memory to be a successful liar.)
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To: JrsyJack

With Katrina, most homes were destroyed by the wind first and then the water.

State Farm & Allstate tried to weasel their way out of paying. But the law said otherwise...

http://www.yourlawyer.com/topics/overview/state_farm_katrina_claims


121 posted on 01/27/2009 4:21:13 PM PST by proudpapa (Obama - The Worst One Ever!)
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To: JrsyJack

The trailer has been there since 1973 in a park built by a religious community and undamaged by any hurricane. They have never filed a insurance claim.


122 posted on 01/27/2009 4:26:54 PM PST by WaterBoard (Somewhere a Village is Missing it's Socialist.)
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To: ConservativeMind

Judge not lest ye be judged.

Perhaps that’s what they can afford at 80 years of age.


123 posted on 01/27/2009 4:27:43 PM PST by WaterBoard (Somewhere a Village is Missing it's Socialist.)
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To: WaterBoard

I have no problems with people getting what they can afford, but don’t expect private companies or government to pay the difference between “what one can afford” and “what one wants.”

There are much cheaper places to live than Florida for retirees, but they aren’t as nice. I’m not judging, I’m just assigning blame for stupidity.


124 posted on 01/27/2009 5:14:20 PM PST by ConservativeMind (Who is now in charge of the "Office of the President-Elect"?)
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To: ConservativeMind

Stupidity? Guess its easy to label a WWII vet and his disabled wife from the lofty moral heights you live in.


125 posted on 01/27/2009 5:49:37 PM PST by WaterBoard (Somewhere a Village is Missing it's Socialist.)
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To: WaterBoard

I haven’t said they are stupid unless they are expecting the government or insurance to insure their trailer at an artificially low cost while living in a disaster-prone area in a home easily ruined.

However, if they are such people, then I am saying such things.


126 posted on 01/27/2009 5:55:10 PM PST by ConservativeMind (Who is now in charge of the "Office of the President-Elect"?)
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To: Fawn

The Razorberg family has had all our insurance ( except life) thru State Farm for 25+ years. State Farm was my parent’s insurance company. As a young man I really didn’t understand the differences between the various companies so I went with what my dad had.
Last year I decided to see if I could do better.
Long story much shorter - I switched to American Family and saved a couple hundred a year on our home owner’s and auto.
This is not a recommendation of Am Fam, nor is it a slam on State Farm.
The bottom line— every few years, see if you can do better. Stick with the AAA rated companies.

(I will not consider Progressive because of their politics.)

In these tough times, highly rated mutual companies are the way to go - especially with life insurance. Doing your homework online is pretty easy. Search on “insurance company ratings”


127 posted on 01/27/2009 6:18:51 PM PST by RazorBerg
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To: CharlesWayneCT

I don’t see how INTERSTATE commerce comes into effect here.

The 10th Amendment also would make this a state’s rights issue I feel.


128 posted on 01/27/2009 6:40:24 PM PST by WheresMyBailout
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To: Fawn

Speaking as an actuary that works for a very major insurance company that shall remain nameless. I’d like to give a few insights to those who seem to be somewhat confused and unaware of the actual function and structure of insurance.

Number one - no insurer is required to pay every claim made by an insured. Every single day we hear some story about frivolous claims being made against the big bad insurance companies. My advice to you...read your policy. The largest insurers hire engineers and claims adjusters who have looked at thousands of claims per catastrophe. Trust me, there are processes in place and thousands of policyholders just like you who think that their claim is covered but simply is not.

Number two - insurance pricing is done on a prospective basis. This means we price your insurance policy based on EXPECTED losses for the COMING year. If you paid 1000 dollars in insurance premiums for 40 years, then you made a bet with the insurer that you were going to cost them more than 1000 dollars each year, and you lost. I’m not at all suggesting that folks should not have insurance (and many don’t have the choice to choose if a mortgage is mixed in the equation). The point is, every year you buy an insurance policy, we have priced you for the expected amount we think it’s possible for us to pay that year. Think about it. One hurricane in 10 years - that’s 1 divided by 10. Let’s say that hurricane does $100,000 damage to your house (not unreasonable for a home near the coast). That is .1 * 100,000. That equals $10,000. Tack on administrative expenses and even a moderate profit load, and you have yourself a huge insurance premium every year.

Number three - of the top 10 most costly hurricanes that have ever hit the United States (adjusted to 2008 dollars), 8 of them hit Florida. Excluding Andrew, all 8 of those occurred in the last 4 hurricane seasons. Maybe someone needs to check their statistics before they state that no hurricane has hit Florida in the past 4 years.

Number four - last but not least. This is a product of Governor Charlie Crist’s antics. He promised lower home insurance rates - no doubt to help him win a bid for VP, just like he tried to go after the utility industry. Poor judgment and bad timing, Charlie. What does this mean? SUBSIDIZATION. Those of you who may have a house in central or northern Florida, though not entirely hurricane-proof, are paying heavily for your friends who are building on the coast. Read up a bit on every rate increase that has been disapproved by Florida’s Office of Insurance Regulation in the past 2 years.

My guess - this is not the end of the insurers’ retreat...


129 posted on 01/27/2009 7:12:51 PM PST by blondekates
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To: RobFromGa

What it means is creating a climate where business is WELCOME.

One reason there are fewer and fewer insurance companies in my state is because of the high risk. The government knows our state is at high risk but doesn’t do much to make it good for the businesses to come back.

So no, it isn’t “giving” money to someone. On the contrary, an incentive to bring businesses down to the state would be a money-saving move...every consumer of a product will benefit when there is more competition.


130 posted on 01/27/2009 7:16:58 PM PST by Recovering_Democrat
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To: Don Corleone

Ahhhhh, I was reading through this thread to see if somebody said, “Obama’s Fault.”

Thank you.

I’m sorry for you folks in FL. It will affect, planes, trains and automobiles (name of a movie). It will also affect Disneyworld employees.

Maybe State Farm wants a bailout from the gov’ment.


131 posted on 01/27/2009 8:28:52 PM PST by Slip18
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To: usurper

Correct me if I’m wrong, but don’t insurance carriers have a reinsurance carrier to back them up?


132 posted on 01/27/2009 8:33:36 PM PST by Slip18
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To: tatsinfla

Look - you can’t force a private company to do something it doesn’t want to just because you don’t like it. It’s wrong.
It’s just like the government telling you you can’t eat something or smoke something or can’t do something because they deem ‘it’s good for you’.

If the economics dont support their business model they should leave. If they feel its unprofitable then they shouldn’t insure the homes. How is this different then them going bankrupt and out of business ? They’re just choosing to NOT go out of business completely.


133 posted on 01/27/2009 9:13:36 PM PST by farlander (Sic Semper Tyrannis)
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To: Retired COB

ROFL. Now THAT would be something to see. Holy crap I’d laugh my head off.


134 posted on 01/27/2009 9:17:48 PM PST by farlander (Sic Semper Tyrannis)
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To: WaterBoard

With all due respect, a WWII vet didn’t fight so that society as a whole could support his lifestyle. At least that’s what most people all around here believe in, and, tugging at heartstrings with the whole ‘WWII vet’ and ‘disabled wife’ is unbecoming and I would bet is NOT what THEY would want.

The unfortunate fact of life is that resources are limited, economics has a set of laws, and that feelings often distort those laws tremendously (see ‘Democrat Party’). Perhaps the choice of words here was unfortunate - substitute ‘bad choice’ for ‘stupidity’ and it’s a lot milder statement, but true never the less.


135 posted on 01/27/2009 9:29:22 PM PST by farlander (Sic Semper Tyrannis)
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To: Mr. Quarterpanel

Same thing with Allstate, which dumped me after 25 years of being a loyal customer.


136 posted on 01/28/2009 4:10:57 AM PST by PatriotGirl827 (Pray for the United States of America!)
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To: farlander

Based on your logic then everyone should move out of Florida. Because resources are limited right? The mobile home has been in an adult religious community since the 1970’s without any damage and not a single claim. Can most say that?

No one has supported is lifestyle at all. He worked for a living and now retired still pays all his bills including his insurance premiums.

As far as being a Vet who does not deserve to be called ‘stupid’, I guess I expect you to understand that. I failed.


137 posted on 01/28/2009 4:28:34 AM PST by WaterBoard (Somewhere a Village is Missing it's Socialist.)
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To: WaterBoard

My logic says if you can’t afford to live somewhere don’t expect others to foot the bill for you or the government to mandate others to foot the bill for you. I’m sorry, but life is tough. As I shovel two feet of snow in front of my house I have VERY little inclination to be footing the bill for someone else to live in the nice Florida climate.

Tough cookies.

Second, being a Vet or not does not shield anyone from external observations of their behavior. You’re playing the ‘victim’ here - noone called anyone stupid because they were a Vet, YOU brought that in to elicit sympathy and justify your positions. A VERY liberal victim-playing tactic. Next thing you’ll say that unless we all pay up for your insurance some child will go hungry.


138 posted on 01/28/2009 4:38:26 AM PST by farlander (Sic Semper Tyrannis)
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To: Fawn

Everyone knows State Farm sucks.

They got sued in Mississippi for deliberately not paying out after Katrina and falsifying/rigging their data findings. 2 whistleblowers who worked for SF blew the case wide open. SF pulled out of MS too.


139 posted on 01/28/2009 5:04:50 AM PST by khnyny ("The demagogue is one who preaches doctrines he knows to be untrue to men he knows to be idiots.")
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To: mgc1122
Maybe the Florida insurance commission can mandate an end to hurricanes striking...

Yeah. Just what I thought. You have no idea what a hot button issue Homeowners insurance is in Florida.

Please try to keep up with regional issues before you open your piehole and grace us with your wisdom.

140 posted on 01/28/2009 6:10:42 AM PST by Mr. Quarterpanel (I am not an actor, but I play one on TV)
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To: Mr. Quarterpanel

“Please try to keep up with regional issues before you open your piehole and grace us with your wisdom.”

ROTFL ... what I know is six major hurricanes in this decade alone pummeled Florida ... and those homeowners who voluntarily elected to own property there are somehow surprised and upset insurance rates in Florida have skyrocketed. Many so called conservatives remain ignorant of the fact companies need to charge rates appropriate for the risk they are taking on — or they leave the market.


141 posted on 01/28/2009 6:30:35 AM PST by mgc1122
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To: conservativebabe; RobFromGa

State Farm customer for about 10 years, hail storm moved through town, everyone is getting their roofs, cars, siding repaired...SF denied me.

Dumped ‘em.

Got someone else to come in to replace the roof and they went to SF to reimiburse them.

RE: people who live in FL.
Why would you want to live in the dick of America anyways? Aint nothing but the fake Disney there.


142 posted on 01/28/2009 9:33:29 AM PST by wallcrawlr
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To: IamConservative

As a Floridian whose homeowners insurance is currently through State Farm this news is distressing to say the least. If I am forced to go through Citizens becuae no private insurers will write policies in the State, my Insurance bill will more than double in price. Citizens didn’t run SF out because it was beating them in price that’s for sure.


143 posted on 01/28/2009 10:23:04 AM PST by contemplator (Capitalism gets no Rock Concerts)
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To: henkster

“We also had Travelers. Good company to deal with. Had an adjuster out in less than a week, had check in hand four days later. Enough not only for replacement roof, but also to upgrade to 30 year shingles.”

We had Travellers. They seemed fine until we had a second claim. Then they booted us. Neither claim was extravagant. We would have gladly paid the second if they would have said they were going to terminate our policy. It was rather annoying.


144 posted on 01/28/2009 1:21:11 PM PST by CriticalJ
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To: Fawn

The now dominant Florida Socialist homeowners insurance (Citizens Property Insurance Co.) is atrocious coverage for super-expensive prices.

America under the democrat party and democrat media yoke: a nation longing to break free.


145 posted on 01/28/2009 9:25:29 PM PST by FormerACLUmember
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To: Russ

“You don’t need private home owner’s insurance. The gubmint will take care of you...”

As well as your mortgage...


146 posted on 01/28/2009 11:42:30 PM PST by aquila48
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To: sagar
Good Riddance to that awful company

Which is just about the same thing Crist said when he heard the news.

147 posted on 01/29/2009 12:12:47 PM PST by KDD ( it's not what people don't know that make them ignorant it's what they know that ain't so.)
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