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Allstate Suspended From Writing Policies

Company Can Still Write Life Insurance Policies

Posted: 2:55 pm EST January 16, 2008Updated: 4:44 pm EST January 16, 2008

Insurance regulators have suspended Allstate Insurance Company's license to write new auto insurance in Florida because the company did not comply with state subpoenas.

Florida Insurance Commissioner Kevin McCarty said he wants to hit Allstate "where it hurts" to send the company a message that it must comply with orders to turn over records.

McCarty abruptly ended a scheduled two-day hearing Tuesday when Allstate failed to turn over certain information requested in the subpoena.

Company executives described the information as irrelevant or trade secrets, which angered McCarty.

McCarty said Wednesday morning that he will consider restoring their certificate to operate in Florida if they comply with the orders.

The suspension affects all four of Allstate's companies in Florida. Messages left for Allstate executives to comment on the suspension were not immediately returned.

Allstate is still allowed to write new life insurance policies.