The AP reported today that the Florida Insurance Commissioner suspended Allstate companies from writing new automobile insurance policies in Florida for refusing to comply fully with a subpoena from the state.
The Commissioner ended a scheduled two-day meeting Tuesday after just two hours. He reportedly was angered that Allstate officials failed to turn over some information the state requested on property coverage rates. Company officials had described the state’s request as “irrelevant.”
Allstate was to have provided documents into its reinsurance program and its relationship with risk modeling companies, insurance trade associations and insurance rating organizations, but instead returned a 51-page letter of objections to the state’s subpoena.
“In view of Allstate’s ongoing, blatant disregard of our subpoenas, I have little choice,” the Commisioner said Wednesday. “Suspending their certificate of authority to write new business in our state should make my point.”
Florida Gov. Charlie Crist has long criticized the insurance industry for its recalcitrance in lowering property insurance rates. He praised McCarty’s action against the Illinois-based carrier.
Existing policyholders will not be affected, according to the Commissioner. Allstate must continue to service their clients and its companies must make all required statutory filings including, annual and quarterly financial statements and rate filings.
The suspension applies to Allstate Insurance Co., Allstate Indemnity Co. and Allstate Property and Casualty Co., and it only suspends the companies from writing new business in Florida.
For more information on this subject, please refer to the section on Car and Motorcycle Accidents.