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Insurance friendly Fla. suspends Allstate's business license

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flashl Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-16-08 02:28 PM
Original message
Insurance friendly Fla. suspends Allstate's business license
TALLAHASSEE -- Insurance Commissioner Kevin McCarty says he will stop Allstate from selling new car insurance in Florida -- a definite kink in a $1.3 billion line for the nation's second-largest auto insurer.

It is the result of Allstate's failure to meet Tuesday's deadline to hand over records McCarty says he needs to determine if Allstate and other insurers conspired to pump up rates in Florida.

"As the individual responsible for protecting Florida insurance consumers I cannot and will not allow this to continue," McCarty announced at a morning press conference.

"In view of Allstate's ongoing blatant disregard for the laws of Florida, I have little choice but to take action to clearly communicate that Florida will no longer be held hostage by this company and its practices. Effective immediately I will suspend Allstate's certificate of authority to do business in Florida."

The suspension will not be issued until Wednesday afternoon, after OIR lawyers finish crafting it, McCarty said.

Florida Today


"Florida will no longer be held hostage". We will see.
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Ian David Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-16-08 02:32 PM
Response to Original message
1. You mean a guy who went on the sex-tourism junket with Rush Limbaugh lies to us in the commercials?
Wow.

That's a shocker.

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ixion Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-16-08 02:35 PM
Response to Original message
2. lol... just called my Allstate Agent to inquire
they said that everything's okay now. Go figure. :)
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flashl Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-16-08 02:43 PM
Response to Reply #2
3. Whats a database compared to billions ...
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flashl Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jan-17-08 07:25 AM
Response to Original message
4. Regulators flog Allstate in public hearing
Regulators flog Allstate in public hearing

A public hearing into Allstate's Florida property-insurance rates ended abruptly with a public spanking Tuesday, and a threat from Insurance Commissioner Kevin McCarty.

Allstate has given Florida more than 30,000 pages of documents, but at a public hearing regulators complained the bulk of what they've been given, all of it stamped "trade secret," exists on public Web sites.

...

Among documents Allstate has refused since October to hand over, claiming in a 51-page objection letter that such files are "irrelevant," are all communications with trade groups such as the Florida Insurance Council.

McCarty called the response a "slap in the face," and announced Allstate's ability to do business in Florida is at risk.

...

Allstate spokesman Adam Shores on Tuesday said the company simply needed more time.

"We are working as diligently as we can, as fast as we can, to comply with the request," Shores said.

...

The insurer sent three executives and a lobbyist to the hearing who ultimately could not answer most of McCarty's questions.

They did reveal Allstate made plans to use a computer model that increased projected hurricane-loss estimates by 43 percent when initial calculations showed a rate cut was in order.

They also showed Allstate after the first 2004 hurricanes created a plan — code-named Bermuda High — to cut the home insurance it writes in Florida while pumping up its auto business.

The insurer did exactly that, dropping hundreds of thousands of Floridians while encouraging them to accept home coverage from Allstate-endorsed carriers that kept their car coverage with Allstate.

Gov. Charlie Crist called Allstate's response "pretty sickening."

At least four other insurers have been served similar Florida subpoenas. Deputy Insurance Commissioner Belinda Miller said those companies, including State Farm, have so far complied.

Tallahassee.com

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flashl Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jan-18-08 06:28 AM
Response to Original message
5. No auto for Allstate
The insurer can no longer write new policies in the state

TALLAHASSEE - Florida Insurance Commissioner Kevin McCarty gripped the lectern and leaned into the bank of microphones.

"We're going to hit them where it hurts," he said.

In a move unprecedented in Florida regulatory history, McCarty on Wednesday issued an order banning Allstate Insurance Corp. from writing new auto insurance policies in the state until the company complies with subpoenas sent by state regulators in October.

Allstate wrote nearly $2-billion worth of auto insurance in Florida in 2006, the last year for which statistics are available.

The suspension comes a day after McCarty abruptly halted a public hearing looking into Allstate's underwriting and claims-paying practices in its homeowners insurance business, saying the company had deliberately failed to turn over documents key to the investigation.

SPTimes
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flashl Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jan-18-08 06:34 AM
Response to Original message
6. Allstate's arrogance merits tough action
To read the 51-page response of Allstate Insurance Corp. to a subpoena for vital records is to understand why Florida insurance commissioner Kevin McCarty had little choice. The company, repeating the words "Allstate objects" no less than 122 times, issued the equivalent of a corporate kiss-off. Given the scope of the state's property insurance crisis and the breadth of Allstate's indifference, McCarty had to act.

The decision to suspend all of Allstate's licenses to sell new insurance, including lucrative automobile policies, is being criticized by some industry observers as a political stunt. But Allstate itself is responsible. Its arrogant non-response and its history of corporate intransigence put McCarty on notice. The only way to get the company's attention is with a regulatory Category 5.

State government, after all, has put its own money at risk in an attempt to lower soaring property insurance, and lawmakers were told their 2007 law should result in substantial rate reductions. Allstate, instead, responded by requesting a 42 percent average statewide rate increase.

As insurance commissioner, McCarty has an obligation both to consumers and lawmakers to peel the layers off this onion. Is the company to trying to profiteer on the backs of ratepayers and taxpayers?

TampaBay
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