In a decision that will send shockwaves through the insurance industry, a court today ruled that the State of Florida was within its' rights to ban Allstate from writing all insurance until it complies with a demand to produce documents. Apparently, we have not been in good hands!
And within hours, the company put 150,000 documents on its website, but the State suspended it from writing new policies anyway because it still has not produced everything that has been asked for.
According to AP, Office of Insurance Regulation spokesman Tom Zutell said that while the state's legal team would review the documents to determine if any are relevant to what the agency is seeking, "at this point, making the (Web-posted) documents public does not satisfy the request."
Zutell noted that Allstate also has sent the office a 196-page list of documents the company has said it would not turn over.
"As long as they refuse to submit all documents requested in the subpoena, the suspension will resume," Zutell said. "Allstate controls how long it lasts - all they have to do to end it is turn over all requested documents."
This all goes back to to a January 2007 law in Florida which stated simply that because ths State had provided companies with cheaper re-insurance, those companies had to pass on all the savings to policy holders. Estimates of 30% reductions in premiums were predicted, but that has not happened and some companies have requested INCREASES instead.
Allstate said it was releasing the documents because some information from them has been cited unfairly in press reports and other forums.
"Public criticisms by people with a vested interest in creating an inaccurate picture of the company's claim practices have been based unfairly on only snippets from the documents taken out of context," Allstate said in a statement on its Web site.
"We continue to believe that the documents deserve protection as containing trade secret and confidential proprietary information and that our actions to protect them from general disclosure have been appropriate," the company said.
The suspension applies to Allstate Floridian Insurance Co., Allstate Indemnity Co., Allstate Property & Casualty Insurance Co., Allstate Insurance Co., Allstate Floridian Indemnity Co., Allstate Fire and Casualty Insurance Co., Encompass Insurance Co. of America Encompass Indemnity Co., Encompass Floridian Insurance Co., and Encompass Floridian Indemnity Co.
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(Copyright © 2008 By Simon L Conway All Rights Reserved.)
Please give me a call if you have questions about the Central Florida real estate market. You can reach me on 407 876 8200. Also visit my web site at http://www.simonconway.net/ or http://www.move2orlando.net/
Tune in to Simon on The Home Team Radio Show at our new home on 660 WORL and syndicated on am1520 WHIM. The show airs in Central Florida at 3pm Eastern and is also available worldwide at http://www.worl660.com/ or at http://www.1520whim.com/
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Simon,
Thanks for the info - this is WOW news. I would not know this without AC.
Kathy