Florida Insurance Commissioner Kevin McCarty 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).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.
Allstate was to have provided all appropriate company documents related to the above topics by Jan. 16, but reportedly 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.
A copy of the subpoena is available to review.
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