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Allstate License Suspended

January 16th, 2008 by Mike Vasilinda

The state suspended Allstate Insurances certificate to do business in Florida. The move comes after the company was uncooperative at a hearing into the companies business practices. Existing customers will continue to be covered, but if you were thinking about using the good hands people to buy car insurance, Mike Vasilinda tells us youll have to think again.

Hear it here: Allstate License Suspended

Allstates ability to write new business was suspended after the company failed to produce thousands of documents subpoenaed by the state. The lack of documents cut short a hearing Tuesday looking at whether the company conspired to keep rates high, by conspiring with trade groups like the Florida Insurance Council.

The maximum fine would have only been ten thousand dollars, so the state opted to get the companys attention.

Current policy holders will not be affected, Insurance Commissioner Kevin McCarty said. This is only for new business in Florida. Were going to focus on their auto business in florida which is about a billion dollars in business in Florida. Were going to hit them where it hurts. Were going to get their attention.

The company isnt writing new home policies so it loses nothing there. Existing home and auto policies will remain in effect.

In this news release, Allstate says its surprised. The state says Allstate can start selling car insurance again when it gets the documents it wants.

Business was slow at John Cheneys Tallahassee Allstate office. Inside, Mr Cheney told us he was uncertain what would happen next.

Bob Lotane represents an industry trade group and he wouldnt speak for Allstate, but he says the message being sent isnt good.

This market as it is, has a serious lack of capacity and I think that the negative tone thats being set here isnt going to help attract anymore, Bob Lotane with the FL. Assn. of Insurance and Financial Advisors said.

Allstate has more than 11 hundred agents in Florida.

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