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
5 thoughts on “Florida suspends Allstate”
Now congress should step up and write legislation that automatically withholds salary and pension money from any administration official (or ex-official) that does not show up in response to a subpoena.
Sometimes you just have to kick them in the nuts. Hard.
What a very Canadian thing to do — up here we have a pretty firm belief that the government should step on misbehaving corporations, hard. (That is one of the great failings of the current federal government.)
In fact, I’d argue that keeping blatant abuses of power like that in check is one ofthe primary roles of government.
Sounds like the yokes and bridles of the corporate ruling classes are slipping a bit. Good thing too as I hear sales of pitchforks and torches to the masses are the only things on the rise.
I am so past ready for tearing government down and starting over.
good hands=bad touch
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