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Allstate Agrees To Cut Homeowners Rates, Pay Fine
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Published: August 15, 2008
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Allstate Corp. has agreed to lower home insurance rates in Florida more than 5 percent in the next 30 days and add 100,000 homeowner policies in the next three years under a settlement with state regulators announced late today.
The insurance giant also will pay a $5 million fine. The settlement stems from Allstate's failure to comply with subpoenas seeking company records related to its rates, state regulators said.
Allstate's refusal to comply with regulators' requests led to several months of legal wrangling that ended after a judge upheld the state's right to suspend the company's license to write new auto policies.
"It is unfortunate that Allstate's disregard of Florida law required the office to take the drastic actions that we did in order to bring Allstate into compliance," Insurance Commissioner Kevin McCarty said. "However, the terms agreed to by Allstate in the consent order go a long way toward restoring confidence in Allstate's business practices."
Allstate has turned over to the state thousands of documents related to it rate-setting process.
Reporter Russell Ray can be reached at (813) 259-7870 or rray@tampatrib.com
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