HARTride 2012
January 16th, 2008, 07:49 PM
State suspends Allstate's insurance license
Wednesday, January 16, 2008
TALLAHASSEE (Bay News 9) -- The state of Florida has suspended Allstate's Insurance license.
The move, which is effective Wednesday afternoon, bars the company from writing new policies in Florida.
On Tuesday, Florida Insurance Commissioner Kevin McCarty abruptly adjourned a rare two-day hearing on Allstate's underwriting practices in Florida after three hours of sometimes heated exchanges.
The second largest property insurer in the state, Allstate had requested a 42 percent rate hike. Not only was that denied, but the insurance commission called the hearing to question how the company establishes rates.
McCarty accused the company of sending regulators a 51-page objection to the subpoenas, while also sending more than 30,000 documents that included little or nothing of value.
Allstate officials said they were apprehensive about handing over certain documents like hurricane risk models and internal memos, calling them trade secrets.
"Either you're going to produce the documents we request or you're not,' said Florida Insurance Commissioner Kevin McCarty. "And if you're not, we will use all means available under Florida law to enforce our authority over our subpoenas.'
No date was set for the hearing to resume.
http://www.baynews9.com/content/36/2008/1/16/317449.html?title=State+suspends+Allstate
Wednesday, January 16, 2008
TALLAHASSEE (Bay News 9) -- The state of Florida has suspended Allstate's Insurance license.
The move, which is effective Wednesday afternoon, bars the company from writing new policies in Florida.
On Tuesday, Florida Insurance Commissioner Kevin McCarty abruptly adjourned a rare two-day hearing on Allstate's underwriting practices in Florida after three hours of sometimes heated exchanges.
The second largest property insurer in the state, Allstate had requested a 42 percent rate hike. Not only was that denied, but the insurance commission called the hearing to question how the company establishes rates.
McCarty accused the company of sending regulators a 51-page objection to the subpoenas, while also sending more than 30,000 documents that included little or nothing of value.
Allstate officials said they were apprehensive about handing over certain documents like hurricane risk models and internal memos, calling them trade secrets.
"Either you're going to produce the documents we request or you're not,' said Florida Insurance Commissioner Kevin McCarty. "And if you're not, we will use all means available under Florida law to enforce our authority over our subpoenas.'
No date was set for the hearing to resume.
http://www.baynews9.com/content/36/2008/1/16/317449.html?title=State+suspends+Allstate