Allstate gets OK to write new policies
Feb 1, 2008
BY BEATRICE E. GARCIA
A Florida district court of appeal will allow Allstate to continue writing new policies in Florida, but it sped up the appeal of its insurance license suspension.
The First District Court of Appeal in Tallahassee issued its order to keep its temporary stay in place late Wednesday.
On Jan. 17, Insurance Commissioner Kevin McCarty had suspended Allstate’s license to write all new insurance policies in Florida because the company had failed to fully comply with a subpoena seeking documents and information.
The Office of Insurance Regulation is investigating Allstate’s business practices as well as relationships with rating agencies, industry trade groups and computer modeling firms that are hired to help set rates. The documents were due Jan. 15.
Two days after the suspension was issued, the district court granted Allstate a temporary stay.
Last week, OIR had asked the court to reinstate its suspension of the company’s license until Allstate provides all the documents that regulators are seeking.
McCarty said he was disappointed by the court’s decision not to immediately reinstate the suspension, but he remains “committed to getting answers to questions about Allstate’s business practices.”
Since a hearing in Tallahassee two weeks ago, Allstate has delivered additional documents to OIR, but not all that have been requested.
For its part, Allstate was pleased the stay will remain in place for now. ”Our agents will be in a position to provide [insurance] choices and serve their communities,” said Adam Shores, an Allstate spokesman.
The order issued Wednesday gives both sides 40 days to comply with all of the court’s requirements for this appeal.