Allstate Insurance Suspended
Allstate Insurance is suspended from selling any new policies in Florida until it complies with a court order and cooperates with a state investigation into how the insurance company set its rates.
The Florida Office of Insurance Regulation began looking into how Allstate set its rates when homeowner policy costs didn't drop measurably last year even after state reforms lowered the company's costs.
Florida Insurance Commissioner Kevin McCarty suspended Allstate from writing policies in January because the company hadn't turned over records to the office's satisfaction.
But Allstate was allowed to continue writing policies while it appealed.
The company lost its appeal and is again suspended from selling any insurance in Florida.
Suspending Allstate Insurance is a very serious matter and it is not something we do lightly. But Allstate left us with no other choice, McCarty said.
Florida's Insurance Commissioner went on to say that the court had determined that the insurance company's actions were a threat to the health, safety and welfare of the people of Florida and they were in violation of Florida law.
The company says it's reviewing the court ruling. Allstate could further appeal the ruling.
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