Q&A: What does the Allstate ban mean for you?

Jan 17, 2008

Q&A: What does the Allstate ban mean for you?

By MADHUSMITA BORA, Times Staff Writer
Published January 17, 2008

Why was Allstate singled out?

Regulators say Allstate didn’t respond to questions they had about the insurer’s relationship with rating organizations such as AM Best, hurricane modelling companies, reinsurers and industry trade groups.

What happened?

Florida’s insurance commissioner suspended Allstate’s auto license, barring the company from writing new auto insurance policies in the state until it turns over the documents regulators have demanded.

What happens next?

Allstate could seek an injunction to stop the order.

What does this mean for customers who are in the process of getting a policy?

Any Allstate customer who has signed a binder must be covered.

Will the state go after other insurance companies?

The Office of Insurance Regulation said it will continue to investigate other companies.

When will Allstate comply with the subpoenas?

The company has yet to provide a time frame.

What does this mean for other auto insurance companies?

More business for them. How much more is uncertain for now.

Who will be most affected by Wednesday’s announcement?

Allstate insurance agents, who earn commissions of about 10 percent of the premium on every policy they write.

Madhusmita Bora can be reached at mbora@sptimes.com or (813) 225-3112.