Released: May 14, 2008
Tallahassee, FL 32399-0326
TALLAHASSEE, Fla. â€" Florida Insurance Commissioner Kevin McCarty today announced the immediate resumption of the suspension of the certificates of authority of the Allstate Companies to write new insurance policies in Florida. The suspension applies to all lines of business and will remain in effect until the companies fully comply with Florida law and produce the documents requested by the Office of Insurance Regulation (Office).
In addition, however, the Office is expecting an affidavit, signed by an Allstate officer, asserting that it has produced all documents requested. Upon receipt of that certification, Commissioner McCarty will immediately stay the suspension â€" with the understanding that the stay is dependent on Allstate’s continued compliance with Florida law and cooperation with the Office’s investigation.
The commissioner’s announcement follows today’s First District Court of Appeal’s (DCA) Opinion denying Allstate’s motion for a rehearing and affirming the Office’s action in issuing the January Immediate Final Order.
“This case illustrates the effectiveness of an Immediate Final Order, such as the one upheld today by the District Court,” said Commissioner McCarty. “Were it not for that order, we do not believe that we would have the documents available for our ongoing investigation. We now have received hundreds of thousands of documents that Allstate had not previously produced.”
The suspension was put in place Jan. 17 after the commissioner abruptly halted a Jan. 15 hearing that was to look into the Allstate Companies’ reinsurance program, their relationships with risk modeling companies, insurance rating organizations and insurance trade associations.
Allstate was to have provided all appropriate company documents related to the above topics by Jan. 15 and was to have brought appropriate witnesses to testify about the documents and issues at the Jan. 15 hearing, but failed to do so. Instead, the Office received 51 pages of objections to the subpoenas.
Allstate appealed the suspension to the DCA, asserting that the commissioner had exceeded his authority by issuing the Immediate Final Order to suspend its certificates of authority; the court stayed the suspension until it could consider the issue.
In its April 4 ruling, replaced by today’s opinion, three DCA judges unanimously agreed that the commissioner had not exceeded his authority when he issued the January Order to suspend the Allstate Companies’ licenses. The Court’s April 4 opinion, as well as today’s opinion, outlines explicitly Allstate’s failure to adequately comply at the Jan. 15 hearing.
The suspension does not affect existing policyholders or consumers who were in the process of securing a policy when the Court’s opinion was issued will not be affected.
In addition, the collateral legal matter with the Division of Administrative Hearings is set for hearing June 16. This proceeding involves Allstate’s alleged failure to comply with the document request; there also are two other counts -- Falsely asserting trade secrets and false certification of its September rate filing.
Allstate agents are encouraged to contact the company’s corporate headquarters with questions or comments.
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. If you would like to review and compare homeowners insurance rates in Florida, go to www.shopandcomparerates.com.
Ed Domansky (edward.domansky@floir.com)
Director of Communications
Florida Office of Insurance Regulation
200 E. Gaines Street
Tallahassee, FL 32399-0326
Phone : 850-413-2515
Fax : 850-488-2348
Courtesy FeaturesUSA.com