Jan 16, 2008 5:45 pm US/Eastern
FL: Allstate Barred From Writing New Car Policies
MIAMI (CBS4) ―
Less than 24 hours after abruptly ending a scheduled two day hearing with representatives from Allstate, Florida Insurance Commissioner Kevin McCarty suspended the insurer from writing any new car policies in the state.
"In view of Allstate's ongoing, blatant disregard of our subpoenas, I have little choice," McCarty said Wednesday. "Suspending their certificate of authority to write new business in our state should make my point."
McCarty and a panel of insurance regulators became angry when Allstate officials failed to turn over some information the state requested on property coverage rates and that company officials described the state's request as "irrelevant." They ended the meeting just two hours into the first day of the hearings.
After the hearing, McCarty said he planned to bring Allstate back later when it had the answers to questions the state had requested. He added that the company would face severe sanctions, including the possibility of losing its license in Florida, if it failed to comply again.
On learning that McCarty had suspended Allstate's ability to write new car policies in the state, Governor Charlie Crist issued the following statement.
"I applaud Commissioner McCarty for sending a clear message to Allstate Companies and protecting Florida's consumers. It is clear to me that Allstate must have something to hide if they are unwilling to comply with the Commissioner's requests. This type of behavior is an unconscionable disregard for this process and their customers.
I am grateful to Commissioner McCarty for taking this bold action today and look forward to further progress through the Senate Select Committee's work next month."
McCarty and a panel of insurance regulators became angry when Allstate officials failed to turn over some information the state requested on property coverage rates and that company officials described the state's request as "irrelevant." They ended the meeting just two hours into the first day of the hearings. After the hearing, McCarty said he planned to bring Allstate back later when it had the answers to questions the state had requested. He added that the company would face severe sanctions, including the possibility of losing its license in Florida, if it failed to comply again. On learning that McCarty had suspended Allstate's ability to write new car policies in the state, Governor Charlie Crist issued the following statement.
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