The First District Court of Appeals of Florida ruled today that a suspension of Allstate Insurance Company’s certificates of authority to transact new insurance business in Florida is back in effect.
Today’s court ruling means that the suspension goes back into effect immediately, according to the Florida Office of Insurance Regulation.
Florida Insurance Commissioner Kevin McCarty filed an immediate final order on Jan. 17, suspending the licenses of the Allstate Companies from writing any new business in Florida. Allstate appealed the suspension and was granted a stay – until today.
McCarty suspended the certificate of authority of Allstate Companies to write new property insurance in Florida pending the company’s full compliance with subpoenas the OIR served Allstate on October 16, 2007.
McCarty’s decision followed a Jan. 14 action when he abruptly halted a scheduled two-day hearing into the Allstate Companies’ reinsurance program, their relationships with risk modeling companies, insurance rating organizations and insurance trade associations.
In January, McCarty said Allstate’s disregard of the subpoenas prompted the state’s action and emphasized the gravity of the situation.
The suspension applies to Allstate Floridian Insurance Co., Allstate Indemnity Co., Allstate Property & Casualty Insurance Co., Allstate Insurance Co., Allstate Floridian Indemnity Co., Allstate Fire and Casualty Insurance Co., Encompass Insurance Co. of America Encompass Indemnity Co., Encompass Floridian Insurance Co. and Encompass Floridian Indemnity Co. It only suspends the companies from writing new business in Florida.
Existing policyholders will not be affected.
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