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Regulators halt Allstate hearing

by Biz Journal SF - Jan 15,2008

Florida Insurance Commissioner Kevin McCarty halted a two-day hearing with Allstate Cos. when the companies failed to provide subpoenaed documents relating to its property insurance rates.

The hearing was to looking into Allstate's reinsurance program, relationships to risk modeling companies, insurance rating organizations and insurance trade associations.

"Allstate's total lack of cooperation and responsiveness made it unproductive to continue the hearing," McCarty said in a news release.

McCarty said he was adjourning to consider his options, which include a fine and suspension or revocation of Allstate's certificate of authority.

The Florida Office of Insurance Regulation said Allstate provided some documents, "but refused to provide documents specifically related to their communications with catastrophe modeling companies, insurance rating organizations and insurance trade associations."

The companies were subpoenaed in October after requesting rate hikes. Allstate Floridian Indemnity Co. and Allstate Florida Insurance Co. have requested rate increases of 28.3 percent and 41.9 percent, respectively. Encompass Floridian Indemnity Co. requested a 38.4 percent increase and Encompass Floridian Insurance Co. requested a 39.7 percent increase.

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