Insurance regulators subpoena Allstate, affiliates

The Florida Office of Insurance Regulation has issued subpoenas to several companies affiliated with Allstate Floridian in a probe of how they set property insurance rates.

The investigation, which directs Allstate to appear in a public hearing, seeks information on how the insurance company's reinsurance program works and its relationship to risk modeling companies, insurance rating organizations and insurance trade groups.

"The legislation enacted in January was very specific about its requirement that insurers reduce the rates they are charging for homeowners insurance,'' Insurance Commissioner Kevin McCarty said. "We are continuing to investigate those companies that appear to be ignoring the intent of the legislature in its efforts to reduce premiums to consumers, and we want to hear the reasons behind those companies' actions.''

State regulators took similar action against State Farm, prompting a settlement in which the insurer agreed to a nominal insurance rate cut.

Among Allstate subsidiaries: Allstate Floridian Indemnity is seeking a rate increase of 28.3 percent; Allstate Florida Insurance is seeking a 41.9 percent hike; Encompass Floridian Indemnity a 38.4 percent increase and Encompass Floridian Insurance a 39.7 percent increase.

A public hearing is slated for Jan. 15 in Tallahassee.

Jeff Harrington, Times staff writer