A day after telling Allstate Corp. to stop writing new car insurance policies in Florida, state regulators told the company to stop writing any new business in the state — including home insurance.
Insurance Commissioner Kevin McCarty had initially planned to clamp down on just the company’s auto business and its four companies doing business in Florida for its failure to fully comply with a state subpoena. But McCarty expanded the suspension Thursday to include Allstate’s 10 companies nationally and all of its insurance lines.
“The commissioner is steadfastly committed to getting to the bottom of this issue and ensuring that all requested documents are produced by Allstate,” said Ed Domansky, spokesman for the Office of Insurance Regulation.
McCarty abruptly ended a scheduled two-day meeting Tuesday after just two hours, angered that Allstate officials failed to fully comply with a subpoena seeking information on some of the company’s business practices and relationships.
The added sanctions, however, might have little effect on the Northbrook, Ill.-based insurance carrier that has been shedding many of its high-risk property policies in recent years.
Allstate Floridian has dropped roughly 335,000 home-insurance customers in Florida since September of 2004, Domansky said.
“We’re in the business of protecting homes, protecting automobiles and that’s what we want to do because that’s the role we play in this economy, in this marketplace,” Allstate spokesman Adam Shores said Thursday. “And we want to continue to do that.”
The suspended companies are Allstate Floridian Insurance Co., Allstate Indemnity, Allstate Property & Casualty Insurance Co., Allstate Insurance Co., Allstate Fire and Casualty Insurance Co., Encompass Insurance Co. of America, Encompass Indemnity Co., Encompass Floridian Insurance Co. and Encompass Floridian Indemnity Co.
Gov. Charlie Crist applauded the expanded penalty.
“I don’t know why you’d want to keep ’em,” said Crist, a longtime antagonist of many insurance companies he believes have gouged Floridians since the hurricanes that struck the state in 2004 and 2005. “I don’t know why you’d want to pay them money for anything.”
Allstate shares fell $1.35, or 2.7 percent, to $49.58 in trading Thursday. They are near the lower end of their 52-week range of $48.90 to $64.81.