Appeals court lifts Allstate ban

One day after Florida regulators ordered Allstate Corp. to stop selling all lines of new insurance in the state, the 1st District Court of Appeal in Tallahassee granted Allstate's emergency motion and lifted the ban.

Allstate argued in its motion that regulators did not give prior notice before issuing the ban, and that regulators can only use their power to shut a company down in the event of an emergency, which Allstate said does not exist.

A spokesman for insurance commissioner Kevin McCarty said regulators will ask that the order be reinstated, and will look into other penalties, including fines. 

Regulators want Allstate to turn over hundreds of documents and explain why the company has not complied with state law and lowered its rates. 

- Tom Zucco, Times staff writer

Comments

[angie]

looks like ins. wins again. Wonder whose up for re-election on the appeals court and who has had donations made to them by big ins.?

[Tingler]

Looks like the heavy handed tactics that of the State of Florida were in fact improper and the court ruled accordingly. Kevin and Chuckles - One and Done - vote them out 2010!

[Ken]

Fine. People of Florida, respond to this garbage by Allstate by getting your insurance from somebody else.

[TNT]

Another temporary setback for the Citizens monopoly effort! There's no more risk of hurricane now than the beginning of time, and there are not four times as many cars on the road in the world than just a few short years ago. Like gas prices, it's just another leveraged money-grab folks.

[Frank]

Justice is served for the moment

I TOLD YOU THEY'D BE BACK IN BIDNESS BY FRIDAY!

SMOKE AND MIRRORS, FOLKS... SMOKE AND MIRRORS!

Everybody gets voted out next election!! Everybody will continue to get voted out until these politicians quit lying to everybody!

[Adac]

Sickening how for once the government is on the side of the citizenry, so the big ins boys just go and hit up their buddys in the court system whose palms they have undoubtedly greased...God Bless America

[Jeff]

The one power the regulators do have is to set rates! Let them role back all of Allstates rates 10% or better yet whatever the savings was projected to be. If they do not comply in yet another reasonable amount of time role their rates back another 10%, etc. Even if they don't roll the rates back it better be a cold day in hell before Allstate sees any part of their 42% rate increase if they do not cooperate.

[Joe Consumer]

Found this homeowner's insurance comparision site on the Florida department of insurance website - I find it curious that Allstate is the lowest priced in Hillsborough county and second lowest in Pinellas county - yet the state goes after them.. Look who's last! Not a peep from the Dept of Insurance or Gov - follow the money! http://www.shopandcomparerates.com/HOCompareRates.htm

[Pete]

Nice going Governor Crist you really improved the insurance picture in FL. Do you think after this attack that Insurance companies will flock to Florida to offer homeowner's coverage in the atmosphere you and McCarty just developed. As the Guinness commercial says "BRILLANT" Insurers are certainly going to think twice now before doing business in FL. All you have done is reduced the field and cut competition in FL. Ever heard of free enterprise? But should we expect from the Governor who brought back PIP and has no clue on tax relief ( amendment 1 is another one of your “BRILLANT” plans.

Just say Allstate calls your bluff and leaves FL how much in Hurricane funds and Citizens surcharges will the state lose? Are you going to reach into your pocket personally to cover the deficit? I think not, your Insurance dept will just reach into my pocket and the other policyholders like me in the State and up the surcharges for each. Really nice not only do I pay for my insurance, but I subsidize Citizens, too. I think instead of Allstate leaving why don't you leave Governor Crist and take McCarty with you before you cost me more $$$$

Charlie Crist is truly a disaster. Its all about the photo op and the quote. This is the poorest excuse for leadership. It really is tragic. Sad, really. Charlie, you lost my vote.

[Obviously]

The report McCarty is looking for deals with soft-tissue injury claimants, those types that the ambulance chaser lawyers thrive on. If you think the cost of auto insurance is too high, you have no idea how much more it would be if the insurers stroked checks to the many, many "claimants" who claim damages due to bogus claims. Yes, I work in insurance and have for 30 years. It's amazing how much better people feel when they have a $5,000 check in their hands. The healing power of that paper is simply amazing.. miracles happen... People, McCarty has his own agenda, a tremendous EGO, political aspirations.. I'd be willing to go on record, he'll be the next Attorney General candidate, a/k/a "AG", or the mini-version of Spitzer (NY), Aspiring Governor.. This witch-hunt against Allstate has nothing to do with claims, it has to do with Crist and his alter-boy, McCarty. See it for what it is, think about it..

[Adam]

It's called due process, folks. See the 14th Amendment to the U.S. Constitution. Notice and an opportunity to be heard must precede state action like this.

[Dr_Dug]

The whole situation sucks..and we voted these fools in office!

[BootCharlie]

Has anyone here actually read the subpoena and the OIR order? I just did and I find it rather curious why the OIR wants 15 yr old documents pertaining to the settlement of injury claims for car crashes when we're talking about homeowner insurance rates. Isn't this a bunch of Tallahassee trial lawyers getting some licks in over the whole No-Fault flap this past fall? Come on people, didn't any of you read the article by the Tampa Tribune about good ol' Charlie and the 1-800-ask-gary chiropractor? http://www.tbo.com/news/money/MGBD46KIG3F.html
Don't get me wrong, I currently pay over $4,000 per year for HO Insurance (and over 9k per yr for property taxes, don't get me started on that...), but are you intelligent folks really going to fall for this? Of course an Appeals Court is going to issue a stay: You can't subpoena irrelevant documents and expect a company not to object, but when they do, you pull their license, because they're an immediate danger to Floridians- Are you kidding??!! Wake up folks... Follow the money indeed...

[Adam]

Actually, the governor appoints district court judges. We keep them by retention elections.

ST PETE TIMES journalists...please list the names of the appellate court judges so that we can know who is on the insurance company's board or whose hands are being greased.

[Tom]

Do you mean the judges who are under the "jurisdiction" of the insurance industry?

[Informed Citizen]

Um, people. The Department of Insurance Regulation does not have an elected Commissioner, and it has not had one for five years. A 1998 constitutional amendment made the Insurance Commissioner and Secretary of State, among others, appointed positions.