This Cowboy hopes some folks up Jackson way are taking notes.
January 17, 4:07 pm ET
By Brent Kallestad, Associated Press Writer
Florida Suspends Allstate From Writing All Sorts of New Policies in the State
TALLAHASSEE, Fla. (AP) — A day after telling Allstate Corp. to stop writing new car insurance policies in Florida, state regulators told the company to stop writing any new business in the state — including home insurance.
Insurance Commissioner Kevin McCarty had initially planned to clamp down on just the company’s auto business and its four companies doing business in Florida. But he expanded the suspension Thursday to include Allstate’s 10 companies nationally and all of its insurance lines.
McCarty abruptly ended a scheduled two-day meeting Tuesday after just two hours, angered that Allstate officials failed to fully comply with a subpoena seeking information on property coverage rates.
“We’re in the business of protecting homes, protecting automobiles and that’s what we want to do because that’s the role we play in this economy, in this marketplace,” Allstate spokesman Adam Shores said Thursday. “And we want to continue to do that.”
The suspended companies are Allstate Floridian Insurance Co., Allstate Indemnity, Allstate Property & Casualty Insurance Co., Allstate Insurance Co., Allstate Fire and Casualty Insurance Co., Encompass Insurance Co. of America, Encompass Indemnity Co., Encompass Floridian Insurance Co. and Encompass Floridian Indemnity Co.
Gov. Charlie Crist applauded the expended supension, which will last until the state gets the materials it demanded with the subpoena.
“I don’t know why you’d want to keep ’em,” said Crist, a longtime antagonist of many insurance companies he believes have gouged Floridians since the hurricanes that struck the state in 2004 and 2005. “I don’t know why you’d want to pay them money for anything.”
Allstate shares fell $1.35, or 2.7 percent, to $49.58 in late trading Thursday amid a broad market pullback.