Florida served subpoenas on the state’s fourth-largest insurance company as part of Florida’s investigation into possible conspiracy among property insurers to keep prices high. The subpoenas order Allstate to produce documents pertaining to its business relationships and practices with trade groups. The subpoenas were served on Allstate and its subsidiary Allstate Floridian Insurance Co. about three weeks after Allstate Floridian proposed increasing its homeowners insurance charges by a statewide average of 41.9 percent.
Florida wants to make sure insurance companies are giving customers the savings the state lawmakers anticipated by allowing the insurance companies to buy less expensive back up coverage. Hearings are set for Jan. 15 and 16 in Tallahassee to deal with Allstate.
About last August, Florida’s largest private insurer, State Farm was subpoenead. State Farm decided to settle with Florida’s Office of Insurance Regulation instead of testifying at the hearings. State Farm Florida Insurance Co. gave additonal rate cuts to its customers and agreed to change how it had planned to drop many homeowner policies throughout Florida.