Allstate suspended – then un-suspended – after court error
Apr 22, 2008
Palm Beach Post--April 21, 2008
By RANDY DIAMOND
Palm Beach Post Staff Writer
A "clerical error" by the 1st District Court of Appeals this afternoon ended a suspension Florida’s insurance commissioner had imposed on Allstate Insurance Co.’s ability to write new policies. Commissioner Kevin McCarty resumed the ban he initiated in January after the 1st District Court of Appeals late this afternoon rejected a motion from Allstate that sought to block the ban.
But as McCarty was talking to reporters about the suspension, he received word from the 1st District that its decision had been issued in error.
Allstate’s license to operate in Florida, initially suspended in mid-January, lasted only one day because the court agreed to a motion by Allstate to stay the decision. This afternoon, the 1st District Court in Tallahassee issued a decision turning aside Allstate’s request to rehear a decision by the court several weeks ago allowing the ban – but then retracted it.
The state says Allstate has refused to comply with a state request for documents showing how Allstate determines its rates.
Under the terms of the suspension, existing policyholders would not be affected, and Allstate must continue to service them.
The following companies would be suspended from writing new business should the ban be reinstated:
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.