Allstate Defies Subpoenas, Continues Writing New Business In Florida
Allstate Insurance Co. has filed a motion with Florida’s First District Court of Appeal requesting a rehearing of an opinion the court issued on April 4 lifting a stay of its suspension to write new business.
In January, the Florida Office of Insurance Regulations (OIR) banned Allstate from writing new insurance policies in Florida because the insurance company failed to comply with subpoenas issued last October to produce documentation pertaining to its property insurance policies in the state. The First DCA granted a stay from the OIR’s order the next day. The OIR told the Insurance Journal that Commissioner Kevin McCarty will continue to pursue this matter until Allstate complies fully with the subpoenas.
Commissioner McCarty should be commended for suspending Allstate’s license to sell insurance policies in Florida. It is nice to see the OIR flex its muscle when needed. Allstate’s abject failure to comply with the state’s subpoena begs the question: What does this insurance giant have to hide from Florida citizens? The deadline for the producing the documents was mid January yet Allstate still has not fully complied. Even more disturbing, Allstate is currently being held in contempt by a Missouri court with a fine of $25,000/day for its failure to produce similar documents. The fines have exceeded $2 million, yet Allstate still has not produced these documents.
After the courts stayed the upheld suspension, allowing Allstate to continue writing policies for now, Allstate Spokeswoman Amy Moore remarked, “The rehearing gives us the opportunity to articulate to the court that OIR’s position jeopardizes the ability of our agents to serve their communities.” In other words, it gives Allstate a little more time and opportunity to collect more money from the citizens of Florida.
