Allstate Involved In Bitter Legal Battle In Florida
Last week the Florida Insurance Regulatory Commission suspended Allstate’s right to write new polices in the state. The reason given for Allstate’s suspension was their failure to comply with subpoenas issued by the state’s insurance office back in October.
The Florida First District Court of Appeal’s however granted a stay on the suspension earlier today. Florida Gov. Charlie Crist was critical of the court’s decision, releasing this statement.
“For too long, insurance companies have ignored the needs of their customers and unfairly taken advantage of Florida homeowners. I am disappointed by the recent action by the First District Court of Appeal to stay Allstate’s suspension. I urge Commissioner McCarty to act as early as Tuesday to show why the order suspending Allstate’s license should remain in effect.”
Florida’ government has been involved in an ongoing dispute with the insurance industry concerning rates in the state, some of the highest in the country. The battle has become increasingly bitter in recent months as many companies sought to raise rates after a very quiet hurricane season.
It has reached the point where the governor has been looking into initiating a class action lawsuit against the insurance industry.
