We are diligently working rumors of a shareholder suit being filed against Allstate over the ramifications of their claims practices for investors. If the rumors hold another significant legal front has opened against this embattled insurance giant.
Allstate is not sitting still though obtaining a stay against the Florida Department of Insurance Regulation’s ban of the company announced last week:
Friday January 18, 5:18 pm ET
By Brent Kallestad, Associated Press Writer
Court: Allstate Can Keep Selling Insurance Pending Appeal
TALLAHASSEE, Fla. (AP) — A court Friday allowed Allstate Corp. to keep selling insurance in Florida while the company appeals an order barring it from writing new policies.
State regulators told Allstate on Thursday to stop writing policies for what officials said was a failure to comply with a state subpoena in a dispute over the premiums the company charges for homeowners insurance in Florida.
The 1st District Court of Appeal stayed the order from the Office of Insurance Regulation pending the appeal, although it gave the office 10 days to show why the company shouldn’t be allowed to sell insurance in the meantime.
“This allows our more than 1,100 agents and their employees across the state to continue to do business in Florida, to create jobs and to serve their communities,” said Allstate spokesman Adam Shores. “We’re going to continue to work with OIR to provide the information they’ve requested in their subpoena.”
Ed Domansky, a spokesman for the Office of Insurance Regulation, said the state has 10 days to file its response but would probably file sooner.
“This is just another step in the process that enables Allstate to further delay production of the documents we requested,” Insurance Commissioner Kevin McCarty said Friday. “I will do everything within my authority as Florida’s insurance commissioner to ensure that the suspension remains in effect.”
McCarty has demanded information about why the company hasn’t dropped rates to the satisfaction of insurance regulators following last year’s passing of a bill meant to lower premiums. As part of that investigation, McCarty subpoenaed the company and officials at OIR said this week that the company appeared to be stalling and not giving up documents state investigators wanted.
The suspension had applied to all types of insurance sold by Allstate’s 10 insurance companies doing business in the state, but does not affect existing policy owners.