Florida Kicks Allstate Insurance Out of the State

According to the Lexington Herald Leader, Florida has had enough of the way Allstate treats its insureds.  According to the article, "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." 
Florida regulators want to know why Allstate refuses to comply with the new legislation that requires all Florida insurers to lower premiums.  Instead, Allstate has requested permission to raise premiums.
Among the subpoenad documents are the famous McKinsey Powerpoint slides that allegedly details Allstate's cost cutting strategy by denying claims.
Readers of this blog will recall the McKinsey documents and Allstate's "Delay, Deny, Defend" strategy was the subject of an unsuccessful trial in Lexington, Kentucky a few months ago when the jury returned a verdict in favor of Allstate in a lawsuit filed by Geneva Hager of Richmond, Ky., over a car wreck. Hager had sought more than $1 billion.  Hager, and her attorney Dale Golden alleged that Allstate's procedures violate Kentucky insurance laws.
Hans Poppe