Florida Orders Allstate to Suspend Writing New Auto Policies
TALLAHASSEE, Fla. --- Florida Insurance Commissioner Kevin McCarty issued an order today that suspends the Allstate companies from writing any new insurance policies in the state until they comply with subpoenas served by the Florida Office of Insurance Regulation, the Miami Herald reported.
McCarty said the suspension would only apply to Allstate's new auto policies. Though the order also includes new homeowners coverage, Allstate had already halted new homeowners policies.
Existing Allstate policyholders will not be affected by the suspension.
McCarty said the documents requested in the subpoenas are crucial to the insurance office's investigation into possible inappropriate behavior by Allstate. The subpoenas seek an explanation of the companies' relationships with rating agencies, modeling companies and trade groups and how these relationships might have influenced major rate increases requested in September, the Miami Herald reported.
The suspension is in effect until Allstate complies, McCarty said.
McCarty said he decided not to try fining Allstate because the company is already paying $25,000 a day to avoid turning over similar documents in Missouri.
McCarty abruptly halted a meeting with Allstate on Tuesday, after company officials refused to turn over documents related to property coverage rates.
The companies affected by the suspension are Allstate Floridian, Allstate Indemnity, Allstate Property & Casualty, Allstate Insurance, Allstate Floridian Indemnity, Allstate Fire and Casualty, Encompass Insurance Co. of America, Encompass Indemnity, Encompass Floridian and Encompass Floridian Indemnity.
In response to the state order, Allstate released a statement saying it was committed to working with the Office of Insurance Regulation to create solutions and ensure a healthy insurance market for Florida consumers.