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State Bans Allstate From Writing Any New Policies

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By JEROME R. STOCKFISCH

Published: January 17, 2008

The state's feud with Allstate Corp. escalated again today, with Insurance Commissioner Kevin McCarty forbidding the insurer from writing any new policies in Florida – expanding the ban from simply auto insurance.

On Wednesday, McCarty said he would yank Allstate's licenses to write auto insurance in Florida, a particularly lucrative line. He cited what he considered Allstate's lack of cooperation with a state investigation into how it sets its homeowners' insurance rates.

The state Office of Insurance Regulation had issued a series of subpoenas to Allstate in October, and McCarty said the company was reacting with "blatant disregard."

By noon today, when Allstate was served with McCarty's order, the state had expanded the freeze to every Allstate subsidiary licensed to do business in Florida.

Allstate did not immediately explain the functions of the 10 different subsidiaries named in the order, but the state Office of Insurance Regulation said Allstate was registered to write marine, earthquake, medical malpractice and workers' compensation policies here.

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