Friday, January 18, 2008

Florida goes after Allstate

Florida and Allstate are apparently in the middle of a rather nasty dispute. Last October, the Florida Office of Insurance Regulation issued subpoenas to certain Allstate companies to testify at congressional hearings scheduled for Jan. 15 and 16.

Allstate officials appeared, but were less than forthcoming. In response, Florida's insurance commissioner suspended Allstate from writing any new policies in the state. As reported by Reuters:
State investigators have been trying to determine if Allstate and other
companies colluded to prevent property insurance rates from dropping despite the
legislative action last year aimed at reducing premiums.

Allstate struck back in court, getting the Florida First District Court of Appeals to issue a stay, allowing it to continue policy writing.

This reminded me that the insurance industry is largely exempt from federal anti-trust law, and is left to the regulation of the states.

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