Miscellaneous

Florida Pulls Allstate?s Ticket

By E L Eversman

In yet another shocking display of hubris, Allstate Insurance Co. — you know, “the good hands people” — defied the Florida Insurance Commissioner’s subpoena to produce documents pertaining to the insurer’s relationships with insurance trade associations, risk modeling companies, and others. Mind you, the Florida insurance agency asked to see these documents as part of its determination as to whether Allstate should be permitted to raise its rates. That’s right. Allstate started this by asking for higher premiums, but it wants those higher premiums without anyone looking into its relationships with others. One could say that Allstate just wants the State of Florida to “take its word” for the fact that it really needs more money.

When Allstate failed to comply with the State’s subpoena, the Insurance Commissioner pulled Allstate’s license to write new policies in Florida. Whack! This penalty adds to the list of defiant acts taken recently by the insurer. In the State of Missouri, a court fined Allstate $25,000 a day for refusing to produce a copy of the McKenzie & Company report that is the subject of the book, “From Good Hands to Boxing Gloves”. Allstate was ordered by a Missouri court to produce the report in a pending case. Allstate flatly refused. The court held Allstate in contempt and ordered the $25,000 per day fine until the insurer produces the report. So far, the fine continues to accrue.

It should be plain to everyone that an insurer as arrogant as Allstate, one that has no qualms about defying legitimate orders from government entities and courts, will have no difficulty treating its insureds with contempt as well. If you think you are likely to receive a fair claim settlement from this insurer, think again. We, as consumers, are fleas to such an insurer, incapable of inflicting any real pain to it. If $25,000 per day fines or the inability to write new policies don’t affect the company’s behavior, consumers have no chance at all.

This is just another good example of why this country needs meaningful insurance reform and a repeal of the McCarran-Ferguson Act exempting insurers from the application of the federal antitrust and other laws.

CollisionWeek News - Florida Pulls Allstate’s License to Write New Auto Policies

Full post as published by AutoMuse on January 17, 2008 (boomark / email).