An Allstate agents group has filed a brief with a Florida appeals court supporting the Northbrook, Ill., insurer's efforts to prevent the state's regulator from lifting the company's license.
Insurance Commissioner Kevin McCarty had suspended the company, but last Friday Allstate secured a temporary stay of that action from the Florida First District Court of Appeal. Mr. McCarty filed a motion Wednesday with the court to have the suspension reinstated.
In its friend of court brief the National Association of Professional Allstate Agents Inc. (NAPAA) argued that if Allstate is banned from selling new insurance policies in the state it would do "serious, irreparable harm" to its agent members.
NAPAA asked the court to make permanent its stay.
Commissioner McCarty issued his order after he subpoenaed the company to turn over material about the insurer's business, including information about alleged improper handling of claims. Allstate, while delivering some material, has balked at handing over other documents.
Allstate sought double-digit increases in its rates in Florida after the state provided carriers with discount reinsurance in expectation that the move would reduce homeowners rates.
Mr. McCarty has held hearings seeking an explanation for Allstate's request and contends the company has not acted in good faith in producing the requested documentation. The company disputes the charges and has said he is on a fishing expedition.
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