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TALLAHASSEE, Fla. (AP) – Allstate’s 1,100 insurance agents in Florida are still in business, thanks to a mistake Monday by a Florida appeals court.

Less than an hour after issuing an order denying Allstate’s appeal of a state-ordered suspension, the 1st District Court of Appeal withdrew it.

In a terse statement withdrawing the original order, the court said “it was issued due to clerical error.” No further explanation was given.

The original order would have stopped Allstate’s agents from writing new business in Florida, but would not have affected existing policies.

Insurance Commissioner Kevin McCarty had just praised the court’s decision and his own legal team at the Office of Insurance Regulation for the work they’d done when his legal counsel, Steve Parton, whispered in his ear.

McCarty walked away from the podium momentarily, returning visibly flabbergasted by the sudden turn of events.

“It’s not one of those things you prepare for,” McCarty said after reading the court’s statement withdrawing the original decision. “We will anxiously await on the court’s ultimate determination of these issues.”

“The bottom line is somebody made an error,” Parton said. “It is what it is.”

McCarty suspended Allstate’s companies in January because the insurer failed to comply with subpoenas seeking information on the company’s pricing strategies.

Regulators wanted documents to determine why the Illinois-based insurance carrier was seeking higher property insurance rates.

Allstate carries roughly 300,000 homeowners policies in the state, many in central Florida away from the riskier coastal areas.

AP LogoCopyright © 2008 The Associated Press, Brent Kallestad (Associated Press Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed


Posted by Ruth Villalta on April 22nd, 2008 5:53 PMPost a Comment (0)

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