TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today announced that he will resume the suspension of the certificates of authority of the Allstate Companies to write new insurance in Florida until they fully comply with the subpoenas served Oct. 16 by the Office of Insurance Regulation (Office).
Today's announcement by the commissioner follows today's First District Court of Appeal's ruling
to allow the suspension of Allstates’ certificates of authority Jan. 16. to resume. The Office is seeking clarification from the court on exactly when the suspension resumes.
The suspension came after the commissioner abruptly halted a hearing into the Allstate Companies' reinsurance program, their relationships with risk modeling companies, insurance rating organizations and insurance trade associations. Allstate appealed the suspension to the DCA, asserting the commissioner exceeded his authority; the court stayed the suspension until it could consider the issue, and today lifted the stay, ruling that the commissioner did not exceed his authority to suspend Allstate Companies' licenses.
"I remain seriously concerned with Allstate's continued failure to comply with our subpoenas; as evidenced by its 196-page privilege log of documents that they have failed to provide us," said Commissioner McCarty. "They have not been 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 requested in September.
"If Allstate is willing to accrue $25,000 per day in fines to a Missouri court
for its ongoing failure to provide similar documents, it's obvious to me that it will take more than a monetary sanction to get them to comply with our subpoenas."
Allstate was to have provided all appropriate company documents related to the above topics by Jan. 16, but failed to do so. Instead, the Office received 51 pages of objections to the subpoenas.
The suspension applies to Allstate Floridian Insurance Co., Allstate Indemnity Co., Allstate Property & Casualty Insurance Co., Allstate Insurance Co., Allstate Floridian Indemnity Co., Allstate Fire and Casualty Insurance Co., Encompass Insurance Co. of America Encompass Indemnity Co., Encompass Floridian Insurance Co., and Encompass Floridian Indemnity Co., and it only suspends the companies from writing new business in Florida.
Existing policyholders will not be affected. Allstate must continue to service them and the companies must make all required statutory filings including, but not limited to, audited annual financial statements, quarterly financial statements and rate filings.
"The duration of the suspension is up to them," added McCarty. "It will be lifted when I am satisfied that we have received each and every document we need to properly investigate the important issues before us.
"The companies' actions have been contrary to the best interests of Florida consumers."
A copy of the subpoena
is available to review.