First District Court of Appeal Denies Allstate Rehearing

The First District Court of Appeal has issued an Opinion and Order dated Wednesday, May 14, 2008, denying Allstate Insurance Company’s motion for a rehearing regarding the Florida Office of Insurance Regulation’s suspension of its Certificate of Authority to write new business in Florida.

To view the May 14 Court Order, click here.

To view the May 14 Opinion, click here.

A statement by Florida Insurance Commissioner Kevin McCarty and news coverage from the Associated Press/The Miami Herald are reprinted below:

 

Should you have any questions or comments, please do not hesitate to contact this office.

 

Statement by Florida Insurance Commissioner Kevin McCarty on District Court Opinion Affirming IFO Against Allstate

TALLAHASSEE, Fla. – “I’m pleased to report that the First District Court today has again affirmed the appropriateness of the Office’s action in issuing the January Immediate Final Order suspending Allstate’s licenses to sell new business in Florida; it has denied Allstate’s request for a rehearing and has lifted the stay of the suspension. As a result, the suspension now is back in effect.

“We are currently reviewing the Court’s opinion and the status of Allstate’s compliance with the law, Section 624.318(2), Florida Statutes, which requires them to freely produce documents requested by this Office. We will be issuing a more detailed statement later today.”

The suspension applies to 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., and it only suspends the companies from writing new business in Florida.

 

Appeals court: State can bar Allstate

The Associated Press

TALLAHASSEE, Fla. — An appeals court says the state can prevent Allstate Companies from selling new property insurance policies in Florida.

The 1st District Court of Appeal ruled Wednesday that a state ban on new policies by the company can go forward. State insurance regulators moved to suspend Allstate in January because the insurer failed to comply with subpoenas. The state has been seeking information on the company’s pricing strategies.

Regulators wanted documents to determine why the Illinois-based insurance carrier was seeking higher property insurance rates.

Allstate challenged the suspension in court and could still appeal Wednesday’s ruling.

The suspension doesn’t affect existing Allstate policies.

 

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