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Appeals Court Blocks Allstate Order

by AP Associated Press - Jan 18,2008

TALLAHASSEE, Fla. (AP) -- A court Friday allowed Allstate Corp. to keep selling insurance in Florida while the company appeals an order barring it from writing new policies.

State regulators told Allstate on Thursday to stop writing policies for what officials said was a failure to comply with a state subpoena in a dispute over the premiums the company charges for homeowners insurance in Florida.

The 1st District Court of Appeal stayed the order from the Office of Insurance Regulation pending the appeal, although it gave the office 10 days to show why the company shouldn't be allowed to sell insurance in the meantime.

"This allows our more than 1,100 agents and their employees across the state to continue to do business in Florida, to create jobs and to serve their communities," said Allstate spokesman Adam Shores. "We're going to continue to work with OIR to provide the information they've requested in their subpoena."

Ed Domansky, a spokesman for the Office of Insurance Regulation, said the state has 10 days to file its response but would probably file sooner.

"This is just another step in the process that enables Allstate to further delay production of the documents we requested," Insurance Commissioner Kevin McCarty said Friday. "I will do everything within my authority as Florida's insurance commissioner to ensure that the suspension remains in effect."

McCarty has demanded information about why the company hasn't dropped rates to the satisfaction of insurance regulators following last year's passing of a bill meant to lower premiums. As part of that investigation, McCarty subpoenaed the company and officials at OIR said this week that the company appeared to be stalling and not giving up documents state investigators wanted.

The suspension had applied to all types of insurance sold by Allstate's 10 insurance companies doing business in the state, but does not affect existing policy owners.

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By Brent Kallestad, Associated Press Writer

Copyright © 2008 The Associated Press. All rights reserved.

Presented by InsuranceHeadlines.com

 

Related news
Fla. court: Allstate can write policies by BusinessWeekOnline posted on Jan 31,2008
Fla OIR files to reinstate Allstate suspension by Jacksonville-Biz-Journal posted on Jan 24,2008
Motion lets Allstate sell policies for two more days by St.-Petersburg-Times posted on Apr 15,2008
Allstate given rehearing deadline by Orlando-Biz-Journal posted on Apr 09,2008
Allstate once again suspended in Florida by Biz-Journal-SF posted on May 15,2008
Appeals court upholds jury verdict against Allstate by KC-Biz-Journal posted on Jul 30,2008
Appeals court upholds $8.5M verdict against State Farm by KansasCityBizJournal posted on Jan 08,2008
Sugarman Obtains Precedent-Setting Appeals Court Decision by PRWEB.com posted on Aug 13,2007
Allstate Comments on Florida First District Court of Appeal's Ruling by Business-Wire posted on Jan 18,2008
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