Allstate On The Hot Seat
Attorney
(866) 735-1102 Ext 415
Allstate Insurance executives are expected to be called by Tallahassee investigators early next month to talk about how the insurance giant makes rates and pays claims.
It's part of the state's investigation into how Big Insurance does business in Florida.
The state is also trying to get the play book on how Allstate does business.
Known as the McKinsey documents, named after a consulting firm that helped form their business practices- the McKinsey documents allegedly show claims adjusters how to persuade customers to accept fast-track offers within 90 days of an accident when people are most in need of cash.
Low-ball offers you could call them.
The state is also looking at high property insurance rates and whether the incentives the big insurers received after a series of hurricanes, have been pased onto consumers.
The insurance execs will be grilled February 4 and 5 in Tallahassee on why property insurance rates have not gone down.
At one point Insurance Commissioner Kevin McCarty got so angry at Allstate's failure to hand over documents during a meeting last week, that he barred the company from writing any new auto then homeowner policies in the state. Allstate wrote about $2 billion in auto policies in 2006. An appeals court later overturned the ban.
People are being charged for auto and property coverage they are never going to get and some would call that fraud. Governor Charlie Crist is even talking to trial attorneys to consider some class action against Big Insurance.
The governor says he wouldn't mind if Allstate left Florida for good. Stay tuned!