Products: New-Size Punching Dies for Bumper Hole Kit
The ongoing saga between Allstate and Florida has so far resulted in the insurer forking over the so-called McKinsey documents, which are purported to detail Allstate’s claims handling procedures.
Attorney David Berardinelli and other lawyers say the materials, developed by consultant McKinsey & Co., detail Allstate’s instructions to settle claims quickly with low-ball offers. If Allstate is unsuccessful in setting the claim, Berardinelli says the company will dispute the claim with steadfast resolve, which can drag the claim process on for years.
In Missouri, Allstate has been fined $25,000 per day since September for refusing to reveal the documents. On Jan. 24, The Palm Beach Post reported that the insurer gave 25,000 pages of documents to the Florida Office of Insurance Regulation (OIR).
The saga between the OIR and Allstate began on Oct. 16, 2007, when Florida Insurance Commissioner Kevin McCarty served Allstate subpoenas requesting certain documents pertaining to the insurer’s requests for a rate increase. When Allstate did not produce the requested documents by Jan. 15, McCarty suspended Allstate’s ability to write new policies in the state.
Allstate immediately filed an Emergency Motion in Florida’s First District Court of Appeal to stop the OIR’s suspension, and the court granted the insurer a stay. The OIR attempted to reinstate the suspension but was denied.
The court has expedited Allstate’s appeal of the OIR’s order, meaning the issue could be resolved this month. As of press time, Allstate had yet to hand over all the requested documents.