Florida lifts suspension of Allstate license

MIAMI (Reuters) - Florida Insurance Commissioner Kevin McCarty said on Friday he was lifting a suspension on insurer Allstate Corp (ALL.N: Quote, Profile, Research, Stock Buzz) issuing new policies in the state after the company stated it had complied with requests from his office for documents.

The move came two days after the First District Court of Appeal in Florida rejected Allstate's request for a rehearing of its attempt to get the state ban lifted.

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.

State investigators are trying to determine whether Allstate and other insurance companies colluded to keep rates high. The companies say Florida's vulnerability to hurricanes justifies high insurance rates.

McCarty said in a statement on Friday that after the court's ruling, Allstate had submitted an affidavit certifying that it had complied with Florida law by freely providing all documents requested by his office.

"I have stayed the suspension of Allstate, and I have accepted its affidavit as evidence that they have completely and unconditionally complied with Florida law and with our requests for documents," McCarty said.

"I also, though, have made it perfectly clear that failure to cooperate with necessary, ongoing requests from the office will result in an immediate resumption of the suspension."

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 plunged into a slump.

The suspension of the license had applied 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.

(Reporting by Michael Christie, Editing by Jim Loney and Gerald E. McCormick)