The “Good Hands” people over at Allstate sure have a strong grip when it comes to holding onto documents demanded by the government. The carrier had its license suspended in Florida this week for failing to cough up everything the state wants in its probe of property insurance rate-setting. Meanwhile, it can't shake a fine of $25,000 a day for refusing to hand over an infamous consultant's report, supposedly on how to stall claims–”a kind of holy grail for plaintiff lawyers nationwide,” notes the “Kansas City Star,” whose readers rightfully hammered the insurer online.

To read more about Allstate's problems in Florida, click here. But today I'd like to share with you some of the angry feedback provided by readers in the Show-Me State.

Missouri courts want Allstate to turn over a report by McKinsey & Company that was the focus of a devastating cover story, “The Insurance Hoax,” last year in “Bloomberg Markets” magazine. (See my Sept. 4, 2007 blog entry for details.) The carrier absolutely refuses to cooperate, arguing that the material amounts to proprietary trade secrets, and has run up fines of some $2.4 million as a result.

You can read all about the latest developments in Missouri by clicking here. But check out some of the reader responses to the Star's online article:

–”Allstate is not above the law. I'll think about changing companies.”

–”The 'good hands' people? Slight of hand, maybe. Or the hands-in-your-pocket people.”

–One independent broker fishing for business among disgruntled Allstate policyholders posted that: “These companies think they're invisible to the court system. We should know, since we have to represent many.” He then posted his Web address.

–”It's not just Allstate, it's most of these insurance companies. They strategize to protect their shareholders, which is fine to a point, but not when you cross the line of morals and ethics just to save a buck.”

–”Anyone who professionally deals with Allstate knows that they will fight any claim (no matter how meritorious it is) like a junkyard dog. I suppose there are people who believe that is what an insurance company should do.”

–”All carriers do the same thing. Claimants are forced to settle for pennies on the dollar or go to trial and pay thousands of dollars out of pocket to get a fair payment by the carrier. This is a business decision by carriers to ensure that that the little guy gets adequately hosed. Get your legislature to change the laws which protect and encourage these actions.”

–I'll conclude my unhappy recap with the sharpest jab in the bunch: “Why do they call 'Allsnake' the 'Good Hands' people when all they give you is the finger?”

To be fair, some respondents did come to Allstate's defense:

–”I've had great service with Allstate. People are always looking for a conspiracy.”

–”Remember to not complain about rising premiums when you're trying to scam your insurance company for money when you have a minor fender bender.”

Once again, a major player in the insurance industry is cutting off its nose to spite its face. Allstate, by going to such extreme lengths to protect whatever dark secrets are in the McKinsey documents, look as if they have something terrible to hide–the truth, perhaps, about how they intentionally manhandle claimants? If not, why not come clean?

Allstate should turn over the damned documents already and put this travesty behind them before their reputation is damaged beyond repair, or more states revoke their license.

In the meantime, they are dragging the industry's already tarnished image down with them.