What does this mean for existing policyholders?

May 15, 2008

Miami Herald–May 15, 2008


Florida Insurance Commissioner Kevin McCarty has suspended Allstate companies from writing new policies in Florida for refusing to comply fully with a state subpoena. How does this move affect policyholders? Here are some questions and answers.

Q: I have an Allstate auto policy. Will it get canceled?

A: No. The Office of Insurance Regulation’s order applies only to new business. Allstate can’t write new policies in the state until it complies with the state’s order to turn over requested documents and provide answers to questions from regulators.

Q.If I had received a quote from an Allstate agent recently and wanted to buy the policy, can I still do it?

A. Yes, OIR will allow Allstate to complete writing any policies where it already had started negotiations while it was waiting for the First District Court of Appeals in Tallahassee to rule on its request for a rehearing.

Q:Will this apply to other types of insurance policies?

A: Yes, it applies to all property casualty insurance, including auto and homeowners. However, the company has not been writing new homeowners policies in Florida since the 2004 storms. Allstate can still sell life insurance and financial services products in the state.

Q: Which companies are affected?

A: The suspension applies to Allstate Floridian Insurance Co., Allstate Indemnity Co., Allstate Property & Casualty Insurance Co., Allstate Insurance Co., Allstate Floridian Indemnity Co., Allstate Fire and Casualty Insurance Co., Encompass Insurance Co. of America, Encompass Indemnity Co., Encompass Floridian Insurance Co. and Encompass Floridian Indemnity Co.

Q: How long is this suspension going to be in effect?

A: McCarty says until Allstate fully complies with his office’s subpoena. Many documents have been handed over, and the ban may not last long.