The war between the Office of Insurance Regulation and Allstate is over for now. State regulators reached an agreement with the insurer. This is good news for Allstate customers who will see a drop in rates, and more policies written. Allstate got in trouble after they asked the state for a rate hike last October and then failed to provide regulators with documents they subpoenaed. After several hearings the insurer was band from writing new business in Florida for about a week. Since then Allstate has been more cooperative with regulators. To make amends the insurer has agreed first of all to pony up 5 million dollars in fines, and secondly they’ll write 100,000 new policies in Florida over the next three years.
“50,000 must be homeowners policy, 50,000 can be condos, renters or other residential policies. Item number three Allstate agrees to further reduce their insurance rates across the board by an additional 5.6 percent,” said Florida Insurance Commissioner Kevin McCarthy.
Allstate has 30 days to pay their fines and lower rates and a September 15th administration hearing with the Insurer has been cancelled.