Allstate barred from new Fla. policies
The insurance company responded to a new law designed to lower insurance costs by boosting its premium rates. Claims adjusters anticipate major hurricane damage in the future. Dan Grech reports.
Tropical Storm Ernesto moves over southern Florida, August 29, 2006. (NOAA via Getty Images)
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Scott Jagow: The insurance company Allstate has been suspended from writing new insurance policies in Florida. The state says this is a last-resort measure because Allstate won't turn over information about how it prices its hurricane policies.
From the Americas Desk at WLRN, Dan Grech reports.
Dan Grech: Last year, Florida lawmakers passed a law they expected to lower hurricane insurance premiums. Allstate responded with a 42 percent average increase statewide.
That incensed Florida's insurance commissioner. Yesterday, he told Allstate it couldn't write any new home, car, fire or marine policies until it cooperated with the state.
Sam Miller: I am not aware of any other state where the relation has gotten this bad.
That's Sam Miller with the Florida Insurance Council, a state trade association.
Miller: Rates have had to go up to make sure that we could pay the claims for major hurricanes that we know we're going to face in the next couple of years. And those increases have created a political firestorm..
Allstate says it has complied with Florida's subpoena. I'm Dan Grech for Marketplace.
