Appeals court: State can bar Allstate

May 14, 2008

Miami Herald--May. 14, 2008

An appeals court says the state can prevent Allstate Companies from selling new property insurance policies in Florida.

The 1st District Court of Appeal ruled Wednesday that a state ban on new policies by the company can go forward. State insurance regulators moved to suspend Allstate in January because the insurer failed to comply with subpoenas. The state has been seeking information on the company’s pricing strategies.

Regulators wanted documents to determine why the Illinois-based insurance carrier was seeking higher property insurance rates.

Allstate challenged the suspension in court and could still appeal Wednesday’s ruling.

The suspension doesn’t affect existing Allstate policies.