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Allstate Being Forced To Turn Over Records

Posted on May 15, 2008

Florida’s Insurance Commissioner Kevin McCarty is working on a deal that will get Allstate Floridian back into business in the state.

Allstate is barred from writing new business  — auto, property or health — until it turns over thousands of documents that will reveal how it does business.  Allstate has been accused of canceling policies at its own discretion and escalating premiums.

This does not affect the two million existing policies. But company agents can’t write any new business.

Allstate has no choice. A Court of Appeal, on Wednesday, said it could not have a rehearing on the ban and the court also said Allstate can’t take the issue to a higher court- the Florida Supreme Court.

This standoff has been going on since January when Allstate didn’t respond to subpoenas to provide company records. Insurance Commissioner McCarty and Gov. Charlie Crist both want all insurance companies in the state to be responsible to the public and more honest in their dealings.

The cost of insurance continues to be a high priority for all Floridians. When companies arbitrarily decide to drop long-standing customers or to stop writing homeowners’; polices after a hurricane, they get the reputation they deserve.

Now between a rock and a hard place, when Allstate turns over records, the suspension on business will be lifted and the company can go back to selling about 6,000 auto policies a week and 900 policies covering big-ticket items and renter’s items. Allstate has not sold property insurance in the state citing huge hurricane losses in 2004.

At Farah & Farah we have Frequently Asked Questions if you are involved in an auto accident. We have experienced accident attorneys who understand insurance companies and how to deal with them. Some used to work for insurance on the other side of the fence.

Big Insurance continues to make record profits often at the cost of the consumer. If they have treated you unfairly, let your legislator know and the Insurance Commissioner, who is holding their feet to the fire and trying to keep the human element in perspective.