Regulators flog Allstate in public hearingA 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.
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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.
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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.
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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