Florida suspends AllState from writing new policies

Florida Insurance Commissioner, McCarty, announced he has suspended Allstate from writing new policies in Florida until they comply with the subpoenas served Oct. 15. Allstate was supposed to provide appropriate documents before Tuesday's hearing, but instead sent 51 pages of objections to the subpoenas.

The suspension applies to all Allstate companies in Florida from writing new policies. Existing policyholders will not be affected and policy renewals will not be affected. Only new business is affected. The suspension will be lifted when the commissioner has received the documents the state needs to investigate the important issues before them.

The commissioner says he was troubled by Allstate not complying with the subpoenas and not willing to explain their relationship with rating agencies, modeling companies and trade groups, and how these relationships might have influenced the huge rate increases they have requestioned. This is the first time Florida has suspended a company for failure to freely provide documents as required by Florida law.

Allstate responded to the FL Office of Regulation in a statement. Allstate was surprised at the OIR's actions and since receiving the subpoenas, Allstate has produced nearly 40,000 pages of information and will continue to produce responsive documents. At this time, it is not clear how this action will affect Allstate or the more than 1,100 Allstate agents in Florida.