Florida Insurance Commissioner Kevin McCarty has filed a response seeking to have his suspension of Allstate’s certificate of authority upheld.

McCarty had suspended Allstate’s license to write new business in the state because the insurer failed to come to a hearing he had called with all the information that his Office of Insurance Regulation [OIR] had demanded in a subpoena. A Florida judge then granted the insurer an emergency motion for immediate relief. McCarty called the ruling “only a minor setback.”

On January 23, Allstate handed over thousands of subpoenaed documents to Florida regulators. Ed Domansky, a spokesman for Florida’s Office of Insurance Regulation, said it was a positive move but added that the documents were overdue and others are still missing. The documents were produced the same day that Insurance Commissioner Kevin McCarty filed a response to an appeal court ruling that temporarily allowed Allstate to write new policies in Florida. In the filing, the OIR claims Allstate is “engaged in an ongoing violation of the Florida Insurance Code” and is committing a crime by violating a subpoena.

Subsequently, Allstate turned over more documents that it has previously classified as containing trade secrets. Adam Shores, spokesman for Allstate, said the company turned over what have come to be known as the McKinsey documents, a report from a private firm related to claims processing.

The insurance commissioner had banned Allstate insurance companies from writing most new insurance policies a few days before as punishment for the insurer’s refusal to turn over the documents.  Allstate says the documents consist of trade secrets, and that it would be hurt if rival companies got a glimpse of its business practices.
 
Fla. Commissioner Seeks to Reinstate Allstate Suspension (BestWire 1/23/08)

January 29, 2008