As reported in the Florida Sun-Sentinel, the State of Florida temporarily banned Allstate insurance Company from doing business in Florida because of Allstate’s failure to turn over certain documents in an investigation into Allstate’s pricing practices. The ban was enacted by the State Department of Insurance, but lifted later by a District Court. The decision is now on appeal. From the article:
The battle between state regulators and Allstate Insurance Co. heated up Friday as the First District Court of Appeal lifted the state’s ban on 10 Allstate companies.
Regulators barred the insurer Thursday from issuing any new policies in the state as a punishment for failing to submit documents demanded by the state. Allstate took the first step in appealing the suspension late Thursday and the Court lifted the ban, giving the Office of Insurance Regulation 10 days to prove the need for it.
McCarty cut short a hearing this week investigating Allstate’s pricing practices after it failed to submit all the documents required. It’s the first time his office has suspended a company for not producing documents.
The potential ban would apply to 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.
If the ban takes effect again, Allstate is expected to be hit hardest in its auto insurance business; it collected $1.93 billion in auto premiums last year in Florida and has recently been adding 3,500 new policies a week in the state.