Florida Suspends Allstate’s License To Sell Home Insurance
Florida’s insurance commissioner on Thursday suspended Allstate Corp.’s license to sell new home-insurance policies in the state. Wednesday, the commissioner had announced he was suspending Allstate’s ability to write new car insurance.
It’s the latest wrinkle in a battle over rising homeowner premiums, and reductions in coverage, in the hurricane-prone state of Florida.
The suspension now applies to all lines of insurance, including fire and marine, sold by 10 Allstate companies operating in Florida.
The move means Allstate, one of the largest insurers in the country, cannot sell new policies in the state for the time being. It doesn’t affect policies currently in force.
Allstate has dropped about 335,000 home-insurance customers in Florida since 2004 as it tries to curtail its exposure to potential losses from hurricanes. The suspension amounts to a freeze on new Allstate business in the state.
The insurance commissioner says the suspension will remain in effect until the insurer complies with a subpoena seeking information on their business practices.
Allstate said it had received the order and will comply.
Commissioner Kevin McCarty acted after he said the insurer failed to fully comply with a subpoena seeking information about the company’s communications with insurance trade groups, risk modelers and ratings agencies in connection with a request for homeowner insurance premium increases of as much as 42%.
A spokesman said the company believed it had complied with the subpoena.
By LIAM PLEVEN and M.P. MCQUEEN
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