Florida Supreme Court Declines Jurisdiction in Allstate Matter

The Florida Supreme Court declined Wednesday to grant Allstate Corp. an injunction to force Florida insurance regulators to let the company write new car insurance and other policies in the state.

The company sought the action after the Office of Insurance Regulation ordered it to stop writing the policies for failing to comply with requests for documents on its business practices. However, Allstate since turned over most of the documents and was allowed to resume its entire line of business in Florida.

The company had turned to the Supreme Court after the 1st District Court of Appeal rejected its effort for an injunction last month.

“The Supreme Court’s decision reassures Floridians that the office has full access to insurers’ books and records and upholds the office’s actions in its efforts to protect consumers,” state Insurance Commissioner Kevin McCarty said June 18.

Allstate officials did not immediately return phone messages for comment on the court’s decision.

Allstate, which has been backing off the high-risk homeowners market in Florida, was stripped of selling car insurance policies for two days in May before complying with OIR’s long-standing request for documents on its ratemaking policies.

If the high court accepted the case it could have effected Allstate’s scheduled September hearing before the Department of Administrative Hearings, said Ed Domansky, spokesman for the Office of Insurance Regulation.

The scheduled weeklong hearing involves the alleged failure of Allstate’s 10 Florida companies to comply with the document request, falsely asserting trade secrets and the false certification of its September 2007 rate filing.

Allstate, based in Northbrook, Ill., has been at odds with Florida regulators for seeking increases on homeowners’ policies exceeding 40 percent.