A Florida court has upheld the Florida Office of Insurance Regulation’s suspension of Allstate from writing insurance in the State of Florida. As previously reported, the Office had suspended Allstate weeks before for a refusal to produce the “McKinsey” documents during an investigation of the company. That investigation resulted in Allstate being cut off from a market comprising 17% of its national sales. The court, in its April 4th ruling, found Allstate guilty of arbitrary reductions of “bodily injury claim payments to its policyholders and beneficiaries by up to 20%.” It also determined that Allstate was engaged in ongoing criminal activity by failing to cooperate with the Office of Insurance Regulation’s investigation of a crime, and that this constituted a danger to the public health, safety or welfare of citizens. After the court ruling, Allstate posted 150,000 documents related to “McKinsey” on its web site. This number of documents is substantially more than the number it had represented were all of the McKinsey documents. These representations had been made in several courts around the country. Several lawyers who have studied the matter say the documents are not as detailed as they should be. Lacking is information relating to how Allstate handles catastrophic claims. Allstate says catastrophes were not a focus of McKinsey’s work because the catastrophe team wasn’t founded until 1996.
There may be more documents due from Allstate, but there is one thing for certain. Allstate’s argument that the documents are confidential trade secrets and that it would be too burdensome to produce them in courts were thrown out the window the moment the company chose to post them on its Web site.
Source: Associated Press
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