Big Friggin’ News!
**TALLAHASSEE (Bay News 9) – The state of Florida has suspended Allstate’s Insurance license.
The move, which became effective Wednesday afternoon, bars the company from writing new policies in Florida.
On Tuesday, Florida Insurance Commissioner Kevin McCarty abruptly adjourned a rare two-day hearing on Allstate’s underwriting practices in Florida after three hours of sometimes heated exchanges.
The second largest property insurer in the state, Allstate had requested a 42 percent rate hike. Not only was that denied, but the insurance commission called the hearing to question how the company establishes rates.
McCarty accused the company of sending regulators a 51-page objection to the subpoenas, while also sending more than 30,000 documents that included little or nothing of value.
Allstate officials said they were apprehensive about handing over certain documents like hurricane risk models and internal memos, calling them trade secrets.
"Either you’re going to produce the documents we request or you’re not,’ said Florida Insurance Commissioner Kevin McCarty. “And if you’re not, we will use all means available under Florida law to enforce our authority over our subpoenas.”
In a statement, Allstate said it was surprised at the state’s Office of Insurance Regulation (OIR) rulings based on several months of phone conversations.
“Allstate is committed to working diligently with the Office of Insurance Regulation to create solutions and ensure there is a healthy insurance market for Florida consumers,” the statement said.
"Since receiving the subpoenas, Allstate has produced nearly 40,000 pages of information and will continue to produce responsive documents to the OIR on a rolling basis.
“We have not yet received an order and are evaluating our options. At this time, it is not clear how this action will affect Allstate or the more than 1,100 Allstate agents in Florida who are small business owners and employers.”
No date was set for the hearing to resume.