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Fla. suspends new Allstate policies

Posted : Thu, 17 Jan 2008 00:08:28 GMT
By : Business News Editor
Category : Finance (General)
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TALLAHASSEE, Fla., Jan. 16 Allstate insurance was suspended from selling new auto policies in Florida Wednesday until it complies with a subpoena, Florida's insurance commissioner said.

Existing auto policyholders of the insurer -- based in Northbrook, Ill. -- won't be affected by the suspension, Insurance Commissioner Kevin McCarty said.

The suspension on writing new auto business will remain in effect until Allstate complies with the Office of Insurance Regulation's subpoenas for documents and information concerning the way the insurer sets rates, The Miami Herald reported. Allstate officials called the state's requests ''breathtakingly broad,'' saying it considers many of the areas trade secrets.

"In view of Allstate's ongoing, blatant disregard of our subpoenas, I have little choice," McCarty said. "Suspending their certificate of authority to write new business in our state should make my point."

Florida Gov. Charlie Crist said he was surprised to learn that Allstate faced a daily fine for resisting a Missouri court order to produce documents.

Allstate, Crist said, "has been horrific in its corporate ethic. (It) has completely lost any trust or confidence."

The order applies to Allstate Insurance Co., Allstate Indemnity Co. and Allstate Property and Casualty Co., as well as new commercial auto insurance policies.

Copyright 2008 by UPI

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Allstate Ins. article
By: tammy albritton , Thu, 17 Jan 2008 05:05:12 GMT

I am so glad that someone has recognized the frustration that many upstanding and professional collision centers face each and everyday in Florida as well as nationwide. It is very unprofessional and in some cases unethical to have generic-aftermarket parts demanded of us to install on customers vehicles. This also rings true for the repairs that are asked to be performed that are not allowed by the manufacturer and /or safe. This not only counts for Allstate. This is a battle with the majority. Nationwide, Progressive and Geico are major players of the same game. These companies have what is right at their finger tips yet ignored with disregard. It's shameful and at the same time these companies have been trained and are also rewarded i.e.,bonuses at the end of the year for how much they saved the company. Allstate is on a grading system. The field appraisers get scolded and/or fired for not adhering. Geico Ins. company has local supervisors who set the plan in motion for his staff. Though they have been properly trained within the company, they are still told not to follow manufacturer guidelines or industry standards. Progressive Ins. refuses to replace or repair though the photos that are taken by their staff and agree, its the local management that cuts the estimate even though they haven't seen the vehicle. Again these companies rule and dominate. Techs are nervous as they are held accountable also as ultimately in the end when the lawsuits come, it is these trained professionals that must defend as the appraisers, adjustors and certainly their management run for cover while pointing fingers. With Allstate shops have to PAY them money to be a preferred shop on their list. The others including Allstate blacklist the shops that have refused to go with their program because we voice the professional opinions that are honest and true backed up by documentation to prove it. Again it is dismissed. It's all truly sad for the people who pay these companies to protect them and their investments. Someone needs to have a voice for the public. Most do not realize any of this until an accident has taken place. I implore anyone with power and courage to take a stand and demand excellence for all companies with public interests. Remember you too must arrive safely to your destination as well as your family. Are you in good hands, Is your company on your side, Everyday is your company doing something that is your company, does your company have a local agent and not a reptile handing the very company that handles your life. Are gimmicks worth life-Make companies OWN what they do. Action is needed. tma



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