From theOrlando Sentinel…
In a dramatic move, Florida Insurance Commissioner Kevin McCarty said
today he was suspending Allstate from writing new business in Florida
“In view of Allstate’s ongoing, blatant disregard of our subpoenas, I
have little choice but to take an action that will send a clear message
about how seriously I am taking this issue,” McCarty said. “Suspending
their certificate of authority to write new business in our state
should make my point.”
Until the suspension is lifted, Allstate will no longer be able to
write Florida auto-insurance policies. Allstate no longer writes
homeowners-insurance policies in the state.
“If Allstate is willing to pay $25,000 to a Missouri court for its
ongoing failure to provide similar documents, it’s obvious to me that
it will take more than a monetary sanction to get them to comply with
our subpoenas,” McCarty said.
Insurance regulators had required Allstate to submit documents related
to the company’s reinsurance program and use of risk-modeling companies
to set homeowners-insurance rates. Allstate had requested
property-insurance rate increases of more than an average 40 percent
throughout the state.
At Tuesday’s hearing, McCarty said the company had not tried to meet
the terms of the subpoena. Allstate instead submitted 51 pages of
objections, he said.
State insurance regulators have questioned insurance companies’ use of
certain risk models that they said artificially inflated the perception
of hurricane risk in the state.
Gov. Charlie Crist applauded McCarty’s move.
I applaud as well