Allstate seeks rehearing on license suspension

Apr 15, 2008

Miami Herald--April 15, 2008


Allstate Floridian has asked the First District Court of Appeal in Tallahassee for a rehearing on its recent decision upholding a suspension of Allstate’s license to write new business in Florida.

Until the court completes the rehearing, Allstate can continue to write new policies. While Allstate and its sister companies have not been renewing homeowners policies in the past three years, auto insurance is a lucrative business for them.

”The good news is that we’re still open for business,” said Amy Moore, an Allstate spokeswoman.

The appeal court had issued a ruling April 4 to reinstate the suspension of Allstate’s license on April 14.

Insurance Commissioner Kevin McCarty had suspended Allstate’s license in late January because the company failed to fully comply with a subpoena for information and documents related to its claims-paying practices and rate filings.

Ed Domansky, a spokesman for the Office of Insurance Regulation, said Allstate’s motion for a rehearing had been expected. But the OIR will continue its investigation of Allstate until the company “fully complies with the law.”

The OIR has until Wednesday to file its reply with the court.