Allstate To Pay Fine and Settle Insurance Dispute With Florida
August 25th, 2008 Categories: Insurance, Pensacola Real Estate News
Allstate Insurance has a jaded record in Florida, and last week they decided to settle their disputes with the state.
For more about Allstate, check out the Pensacola Real Estate News article Think You’re In Good Hands? Think Again for more on Allstate’s treatment of its customers.
Florida Insurance Commissioner Kevin McCarty complained that Allstate failed to provide rate-related documents regulators had demanded, falsely claimed the material contained trade secrets and falsely certified a request to raise rates by more than 40 percent. Those complaints sound pretty serious to me.
As a result of McCarty’s complaints, Allstate has agreed to:
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Insure 100,000 more Florida homeowners against hurricanes and other perils
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Forgive a $175 million loan to its Florida subsidiaries
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Pay a $5 million fine
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Give an additional 5.6 percent rate cut to homeowners insured by Allstate Corp. in Florida
“It’s unfortunate that Allstate’s disregard for Florida’s laws required the office to take such drastic actions. However, I’m glad that we’ve reached this agreement,” McCarty said. “We’re looking forward to restoring the confidence of Allstate insurance companies.”
But wait, there’s more. Mr. McCarty has said that his office will continue to investigate Allstate for other possible violations of state law in claims handling and potential collusion with rating organizations, trade associations and other entities.
If these violations are substantiated the company could face fines, suspension or revocation of its licenses to do business in Florida.
Does this sound like a company you want to do business with? Do you really think you’re in “good hands”?
Check out the related web sites below for more information.
You’re In A Bully’s Hands With Allstate
Consumer Affairs Allstate Complaints
Excellent article – thanks for passing it along.
If you lose your Florida home insurance with Allstate Floridian in Escambia County or just don’t want to hang around for the high prices here is some help:
http://www.homeinsurancebuyers.org
http://www.homeinsurancebuyers.org/PurchasingTheBuyersGuide
http://www.homeinsurancebuyers.org/FindingPrivateInsurance
I saw this in a newspaper article and it helped me a ton after Allstate dropped my homeowners insurance in Florida in Escambia County.
This was a great victory for Florida insurance consumers!