Florida Insurance Department Slams Allstate

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You’re in good hands, or rather, you’re in handcuffed hands. The latter is the case for Florida residents looking to purchase a new auto or homeowners insurance policy from Allstate Corp. It seems Florida Insurance Commissioner, Kevin McCarty, has suspended the company’s ability to sell new insurance policies in the state, effective today. The reason is due to an ongoing¬†probe into previous rate increases by Allstate in Florida.¬†McCarty had subpoenaed Allstate last year for documents related to the probe, but instead received a 51-page objection letter from the company.

Rather than fine the company, Commissioner McCarty decided to send a clear message by suspending the company’s insurance license in the state. Existing policyholders will not be affected by the order; however, Allstate cannot sell any new policies.

“In view of Allstate’s ongoing, blatant disregard of our subpoenas, I have little choice but to take an action that will send a clear message about how seriously I am taking this issue,” said Commissioner McCarty. “Suspending their certificate of authority to write new business in our state should make my point.”

 

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