Florida court reaffirms Allstate suspension
MIAMI (Reuters) - A Florida court on Wednesday reaffirmed the state's ban on Allstate Corp issuing new insurance policies in the state, and denied the insurer a rehearing in the case.
Florida's insurance commissioner said the First District Court of Appeal lifted a stay on the suspension of the license that had been in effect while Allstate appealed the state regulator's actions.
"As a result, the suspension now is back in effect," the office of Insurance Commissioner Kevin McCarty said in a statement.
Florida's Office of Insurance Regulation suspended Allstate in January, saying it had not fully complied with a subpoena to testify about its property insurance business.
Florida investigators are trying to determine if Allstate and other insurance companies colluded to keep rates high.
The companies say Florida's vulnerability to hurricanes justifies high insurance rates.
The cost of insurance, coupled with sky-high property tax rates, ranks among the top concerns of voters and is one reason the state's once booming property market has imploded.
Florida Gov. Charlie Crist, a Republican who has displayed a populist bent, said he was "delighted" with the court's decision.
Crist said the state government and legislature had been seeking to create a more transparent and honest market for home property insurance and had now been joined by the judicial branch in their efforts to protect consumers.
"That's a beautiful thing because the people deserve justice and some of these insurance companies -- I should be cautious because some are doing very good work -- but some of them, like Allstate, have been horrific, let me put a fine point on it," he told reporters in Fort Lauderdale.
McCarty scheduled a news conference for later on Wednesday.
The suspension of the license 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.
The suspension prevents the companies from writing new policies in Florida.
(Additional reporting by Jim Loney in Fort Lauderdale, reporting by Michael Christie; editing by Tim Dobbyn)
