Regulators abruptly halt Allstate hearing

TALLAHASSEE - After just three hours of sometimes heated exchanges today, Florida Insurance Commissioner Kevin McCarty abruptly adjourned a rare two-day hearing on Allstate Floridian's underwriting practices.

McCarty accused the company of sending regulators a 51-page objection to the subpoenas, while also sending more than 30,000 documents that included little or nothing of value. "They sent us rate filings already posted on our Web site,'' McCarty said.

No date was set for the hearing to resume.

Regulators want to know about Allstate’s relationships with rating services, trade groups and hurricane modeling companies.

--Tom Zucco, Times staff writer

Comments

I've wondered for a while if the insurance companies weren't "motivating" hurricane modeling groups to publish "worst case scenario" projections over more realistic ones.

Two years in a row we've heard about the terrible hurricane season on the horizon, and two years in a row we had nominal activity in FL. The projections caused our rates to go up, but when nothing happened - rates didn't go down. That means big money for insurers based on inflated risk.

[wazzamattaU]

Good for McCarty! This is the kind of 'Regulator' we need more of.

[Scott]

When the losses occurred in 2004, the companies were suppossed to tap reserves to pay claims then pass the rest on to reinsurers. With zero losses int he last three years, reserves should have been replentished for both primary and secondary insurers. instead, the companies took record profits and replaced reserves on a 10 year pro-rata. This allows hem to keep rates high based on depleted reserves. It's a bunch of bull. The politicians will not go against these guys...the solution is simple. Tell them to lower rates, or boot them out of the state. If they won't lower homeowner rates, they should ne be allowed to reap the benefits of a lucrative auto insurance market.

[melissa]

SHADY! THEY ARE JUST AS BAD AS THE HEALTH INS COMPANIES! AND THE LOBBIEST THAT BRIBE THEM ALL!

[Chris]

Remember how far off the hurricane forecast was last year? And coincendently, the insurance industry made more money that they ever had.

I don't believe in coincendences like this. For a million dollar payoff, most "hurricane forecasters" would issue a scary report in a heartbeat.

[Chris]

Melissa, can you ever not yell and come out with something coherent?

[Dan]

Unfornutately, I have had the misfortune of dealing with Allstate and found them to be the bottom feeders of the insurance industry. They give the legitimate companies a bad name.

[hank]

How about we look at Citizens also. My Citizens Ins went up this year. I thought with the special session it was suppose to be frozen at 05 levels? I sent a letter to Gov. Crist and the response i received was they would foward my letter to Ins Commisioner. Ive never received a response from them yet.

[CSI]

After ALL and the many many years folks have paid insurance to these scum, they are still backing out of what is owed to us all. Never forget how they turned their back on ones who lost everything, only to find out they won't pay up. The STATE should be for it's people not the insurance company.
My insurance company told me better luck next time after 30 yrs. Nice Huh?

The politicians are never going to fix this problem. Governor Crist has done nothing but blow smoke,and as a registered republican that voted for him. To say that I am totally disgusted would be an understatement.If my homeowners insurance gets dropped by State Farm you can bet that I'll also cancel my auto insurance policy

[Teddymac]

I saw the representatives Allstate sent to the hearing, they were kids! When the old guys show up that will signal the insurance companies are afraid of Tallahassee, until then it is a big game.