Wow, Allstate has been hit hard in another state. Florida has decided that the company will not be allowed to sell new auto policies in the state until the company complies with court-issued subpoenas to bring forth documents.
These documents cover 59 areas concerning Allstate’s policies on the way it sets its rates. Allstate has been commanded by law to bring forth this information. It has refused up to this point because it maintains that these documents would reveal information that is considered trade secrets.
Florida’s insurance regulators, led by commissioner Kevin McCarty, have therefore suspended Allstate’s certificate of authority to write new auto insurance policies in the state.
Florida lawmakers had been in the process of questioning the Allstate officials on its rate policies and the company’s projected rate hikes on its homeowner policies also. These policies that Allstate considers a trade secret includes a homeowner rate hike averaging close to 42 percent.
Florida officials cut the public hearing short when Allstate’s officials failed to provide the documents and answers that had been requested.