The state suspended Allstate Insurance’s certificate to do business in Florida. The move comes after the company was uncooperative at a hearing into the companies business practices.

Existing customers will continue to be covered, but if you were thinking about using the good hands people to buy car insurance, you’ll have to think again.

The action to suspend Allstate’s ability to write new business came after the company failed to produce thousands of documents subpoenaed by the state. A frustrated Insurance Commissioner Tuesday cut short a hearing looking at whether the company conspired to keep rates high, by colluding with ratings or trade groups like the Florida Insurance Council.

The maximum fine would have been only ten thousand dollars...so the state opted for the strongest penalty it has.

The company isn’t writing new home policies so it loses nothing there. Existing home and auto policies will remain in effect.

Allstate will get its license back when it give the state the documents it is seeking says the insurance commissioner.

Allstate expressed surprise in a news release. Business was slow at John Cheney’s Tallahassee Allstate office. Inside, Mr Cheney told us he was
uncertain what would happen next.

Bob Lotane of the industry trade group would not speak for Allstate, but he says the message being sent isn’t good.

Allstate has more than 1,100 agents in Florida.