TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today abruptly halted the scheduled two-day hearing into Allstate Companies’ reinsurance program, their relationships to risk modeling companies, insurance rating organizations and insurance trade associations.
Allstate was to have provided all appropriate company documents related to the above topics, but failed to do so.
"Allstate's total lack of cooperation and responsiveness made it unproductive to continue the hearing," said McCarty. "The bottom line is that it is not fair to Florida consumers that this company has not complied with our subpoenas and is not willing to explain to us their relationships with rating agencies, modeling companies and trade groups and how these relationships might have influenced the huge rate increases they have requested.
"I am as deeply concerned as any consumer at the lack of respect that Allstate has shown toward their statutory responsibilities."
Commissioner McCarty advised those in the hearing that he was adjourning to consider his options. His options could include a fine, suspension or even revocation of Allstate’s certificate of authority – essentially taking away its right to do business in Florida. The commissioner expects to make his decision very soon.
"Allstate did provide some documents, but refused to provide documents specifically related to their communications with catastrophe modeling companies, insurance rating organizations and insurance trade associations," said Office of Insurance Regulation General Counsel Steve Parton.
Allstate Floridian Indemnity and Allstate Florida Insurance Company have requested rate increases of 28.3 percent and 41.9 percent respectively. Encompass Floridian Indemnity requested a 38.4 percent increase, and Encompass Floridian Insurance Company requested a 39.7 percent increase.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. Business units within the Office are organized based on regulatory expertise and include the areas of life and health, property and casualty, specialty lines and other regulated insurance entities. It is within the Office that the mission of public protection is implemented through regulatory oversight of insurance company solvency, policy forms and rates, market conduct performance and new company entrants to the Florida market.
For more information about the Office, please visit www.floir.com