Florida's Office of Insurance Regulation today filed an official administrative complaint over what it claims is the company's insufficient response to a subpoena seeking information about its practices.

"Seeking to suspend a company's license is not something we take lightly," said General Counsel Steve Parton. "However, in light of their defiance of the Florida Insurance Code, we think it is necessary to make the point that actions such as we have seen by Allstate will not be tolerated."

Deb Clouser, a spokesperson for Allstate, said the complaint is a "legal requirement" in the process of moving the dispute forward, and that it was "not unexpected." Allstate, she added, is "weighing our legal options," but had not yet reached a decision on how the company will respond.

At issue is Allstate's response to a subpoena issued by Florida Insurance Commissioner Kevin McCarty, which the OIR argued constituted a "willful failure" to comply with the subpoena. Additionally, the OIR said in the complaint that boxes of documents submitted by Allstate in response were inappropriately labeled as trade secrets.

"Allstate even designated documents that they knew were already in the public domain as trade secret," the OIR alleged in the complaint. The OIR noted in its complaint that all companies are required to "make freely available" documents subpoenaed by regulators.

The OIR initially issued its subpoena for the documents as part of a challenge to Allstate's rate filing. According to the OIR, the company was initially supposed to provide all witnesses and documents for a Jan. 15 hearing. The company raised objections to parts of the subpoena, but has delivered some documents. The OIR was not satisfied with the response, however, and on Jan. 17, Mr. McCarty issued an order suspending the company from writing any new business.

Allstate, however, contended that the OIR exceeded its authority and challenged the suspension, winning a temporary stay of the suspension order. That stay, Ms. Clouser said, remains in effect and the company "continues to write new business" in the state.

The OIR said it expects Allstate to respond to the complaint, and if requested, a hearing would be held at the state Division of Administrative Hearings.

At a hearing, an administrative law judge would hear the evidence and rule on the facts of the case. Depending on that ruling, Mr. McCarty could then issue a final order which may impose a suspension. If necessary, Allstate could appeal the case to the First District Court of Appeal in Tallahassee.

Special Reports /

Fla. Issues Formal Complaint Against Allstate

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