Reuters reports that Florida insurance regulators have suspended Allstate from writing auto policies because of its failure to cooperate with an investigation regarding the company’s property insurance policies. Allstate was scheduled to testify for two days before regulators regarding a proposed rate increase of 41% for property insurance. The hearing was cancelled after less than three hours, however, when Allstate refused to answer questions and provide specific documents.
Allstate avoided questions regarding its compliance with a Florida law passed in January 2007 to give consumers premium relief. The panel was investigating a new hurricane model that Allstate began using to calculate its rates. Under the model, rates went up, although the company said increases were not intended. The model was not approved by the state.
The Florida Insurance Commissioner intends to bring Allstate back for a continued hearing later this year. Allstate faces severe sanctions, including the possibility of losing its license to operate its four Florida companies if it continues to refuse to cooperate.
