Florida Insurance Commissioner Kevin McCarty is not backing down and continues to demand from Allstate all requested documents related to the company’s policies. The battle between the state and Allstate began several months ago when the insurer filed a rate request with the state for a rate increase for many of its property insurance customers of more than 40 percent.
Allstate is hoping to resolve the situation before an expected appeals court ruling next week on whether state regulators can prohibit the company from writing new policies in Florida.
Allstate says it has turned over 400,000 pages to the state, which is looking into the company’s underwriting, pricing and claims handling procedures. (See related story HERE.)
Allstate is objecting to being forced to turn over documents that show communications between its lawyers and company officials, maintaining that both state and federal law protect such communications.
State regulators say Allstate has also not handed over documents pertaining to its communication with insurance trade groups and modeling agencies that assist in forecasting hurricane risk.
McCarty has been trying to uphold his suspension of Allstate’s license to write new business since last January, when he leveled state insurance code violations against the insurer for refusing to hand over all subpoenaed documents.
Thus far, Allstate was only suspended for a day in January because the First District Court of Appeals had stayed the state’s suspension decision. The court did declare April 4 that the state did have the authority to suspend Allstate’s license, but the insurer asked for a rehearing.