Fla. Insurance Commissioner Says Allstate Uncooperative, Stops Hearing
Florida Insurance Commissioner Kevin McCarty abruptly halted the scheduled two-day hearing Tuesday into Allstate Companies’ reinsurance program, their relationships to risk modeling companies, insurance rating organizations and insurance trade associations.
Allstate was to have provided all appropriate company documents related to the above topics, but failed to do so, according to McCarty.
“Allstate’s total lack of cooperation and responsiveness made it unproductive to continue the hearing,” McCarty said. “The bottom line is that it is not fair to Florida consumers that this company has not complied with our subpoenas and is not willing to explain to us their relationships with rating agencies, modeling companies and trade groups and how these relationships might have influenced the huge rate increases they have requested.
“I am as deeply concerned as any consumer at the lack of respect that Allstate has shown toward their statutory responsibilities.”
McCarty advised those in the hearing that he was adjourning to consider his options. His options could include a fine, suspension or even revocation of Allstate’s certificate of authority – essentially taking away its right to do business in Florida. The commissioner expects to make his decision very soon.
Florida Office of Insurance Regulation General Counsel Steve Parton said, “Allstate did provide some documents, but refused to provide documents specifically related to their communications with catastrophe modeling companies, insurance rating organizations and insurance trade associations.”
Allstate Floridian Indemnity and Allstate Florida Insurance Co. have requested rate increases of 28.3 percent and 41.9 percent respectively. Encompass Floridian Indemnity requested a 38.4 percent increase, and Encompass Floridian Insurance Co. requested a 39.7 percent increase.
Source: Florida Office of Insurance Regulation