Florida Court Suspends Allstate in Florida

On Friday, April 4, 2008, the District Court of Appeals, First District, State of Florida upheld the Florida Office of Insurance Regulation’s suspension of Allstate from writing insurance in the State of Florida.
Allstate had been suspended weeks before for refusing to produce documents during an investigation of the company. The Florida market comprises 17% of Allstate’s national sales.
The court found Allstate guilty of arbitrary reductions of “bodily injury claim payments to its policyholders and beneficiaries by up to 20%.” It also determined that Allstate was engaged in ongoing criminal activity by failing to cooperate with the Office of Insurance Regulation’s investigation of a crime, and that this constituted a danger to the public health, safety or welfare of citizens.
Realizing the seriousness of this, given a pending shareholder lawsuit against the company for other problems resulting from the company’s refusal to turn over the documents in several cases nationally, Allstate posted 150,000 documents on their web site.