No More Good Hands Allstate Auto Written in Florida
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It was a bit of a standoff in Tallahassee today between the state Insurance Commission Kevin McCarty and Allstate executives.
Seems they were under subpoena to bring documents into a hearing. They didn't. Allstate decided the request was "irrelevant." McCarty was so angry he suspended Allstate companies from writing any new auto policies.
The meeting was supposed to last two-days but was suspended after two hours. While the move hurts Allstate it also hurts Florida consumers but there was a reason for the suspension.
The state insurance office was probing property coverage rates, Allstate's reinsurance program and its relationship with risk modeling companies, trade associations and rating organizations.
Instead Allstate turned over a 51-page letter that stated the company's objections to the subpoena.
"In view of Allstate's ongoing, blatant disregard of our subpoenas, I have little choice," McCarty said Wednesday. "Suspending their certificate of authority to write new business in our state should make my point."
If you currently have business with Allstate, it will not be affected. But if you need a new auto policy from Allstate or one of its companies including Allstate Insurance Co., Allstate Indemnity Co. and Allstate Property and Casualty Co. it will not be available for the time being.
Gov. Charlie Crist, applauded the actions of McCarty.
The state was holding a hearing on property rates to discover whether the company was following a new law to lower premiums. For two hours company executives dodged questions about following the law and that infuriated McCarty.
For more information on this subject, please refer to the section on Car and Motorcycle Accidents.