Allstate barred from new Fla. policies
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Allstate barred from new Fla. policies
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Scott Jagow: The insurance company Allstate has been suspended from writing new insurance policies in Florida. The state says this is a last-resort measure because Allstate won’t turn over information about how it prices its hurricane policies.
From the Americas Desk at WLRN, Dan Grech reports.
Dan Grech: Last year, Florida lawmakers passed a law they expected to lower hurricane insurance premiums. Allstate responded with a 42 percent average increase statewide.
That incensed Florida’s insurance commissioner. Yesterday, he told Allstate it couldn’t write any new home, car, fire or marine policies until it cooperated with the state.
Sam Miller: I am not aware of any other state where the relation has gotten this bad.
That’s Sam Miller with the Florida Insurance Council, a state trade association.
Miller: Rates have had to go up to make sure that we could pay the claims for major hurricanes that we know we’re going to face in the next couple of years. And those increases have created a political firestorm..
Allstate says it has complied with Florida’s subpoena. I’m Dan Grech for Marketplace.
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