According to a study conducted in collaboration with the James Madison Institute, the Competitive Enterprise Institute and Heartland Institute, Florida gets an ‘F’ grade on a national insurance report card based on a study outlining the state’s insurance ills.
The state earned the dismal rating – the lowest possible – after a national study compared the insurance environments in all 50 states and the District of Columbia. Only four other states fared as bad.
Fla. Rep. Dennis Ross, R-Lakeland, and Fla. Rep. Don Brown, R-DeFuniak Springs, fittingly unveiled the report card midday on Monday in Tallahassee while Florida senators grilled insurance executives in another wing of the capitol complex.
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A day after he threatened to block Allstate from selling auto insurance in the state of Florida, Insurance Commissioner Kevin McCarty ordered Allstate to stop selling all insurance policies in Florida.
Allstate had not immediate reaction but is expected to go to court to try and overturn this ban.
The suspension affects only new policies by the state’s second-largest auto insurance group, including Encompass and Allstate Floridian. Those with current home and auto policies are not affected. Neither are renewals of existing policies. Allstate has 2 million customers in Florida.
The order is in retaliation for Allstate’s refusal to turn over records subpoenaed by McCarty’s Office of Insurance Regulation. The investigation began as an inquiry into whether Allstate and other insurers conspired to pump up hurricane rates in Florida despite legislation intended to bring homeowners relief.
McCarty also wants Allstate to turn over what’s called the McKinsey Report, a consultant’s report from 1992 that suggested Allstate use a computer system called Colossus to generate auto injury claims payments based not on losses but on profit goals.
To date, Allstate has refused to release the records, including to a Missouri judge who has imposed a $25,000-a-day fine against the company.
It is about time that someone in Florida Government took steps to stop the insurance companies improper actions against Florida residents. Keep up the good work Mr. McCarty.
About Mr. McCarty: Three years into his tenure as Florida’s first appointed insurance commissioner, Kevin McCarty has cemented his reputation as an innovator utilizing technology to improve the regulatory process, as a fierce defender of seniors and historically discriminated minorities, and as a national leader who is forging a coalition to implement a national catastrophe strategy.











