Florida Puts Brakes on Allstate Auto & Home Insurance Sales
The good hands people have played fast and loose with too many people too long and the Florida Insurance Commissioner has held their feet to the fire. As of May 14, 2008, Allstate agents in Florida can’t sell new auto insurance policies or homeowners coverage. State regulators have put them out of business in an effort to strong-arm information from the company in an ongoing battle over high rates and business practices. With the muscle of a favorable court ruling behind him, Florida Insurance Commissioner Kevin McCarty expects Allstate will soon allow his office free access to its records and thus end the shutdown. With a signed affidavit from company officers promising unconditional compliance, McCarty said Wednesday he’d lift the then hours-old order against Allstate doing any new business in the state.
“The timeline is in their hands,” McCarty said. “Clearly they have indicated a willingness to provide further documents. It’s unfortunate that it takes a succession of court cases . . . to get their attention.” For now McCarty is enforcing the suspension he first issued in January to wrest documents and testimony from the company in an ongoing investigation of rates, policy cancellations and business practices. The sanction does not affect Allstate’s existing 2 million customers. Allstate officials said they’re moving to fix things.
Way to go Florida! It is about time Allstate was forced to be the "good hands" people they claim to be. We are all looking forward to the little dirty secrets that will be uncovered IF they actually produce all the information and documents that have been compelled to be produced by the Florida courts.
