On the heels of suspending AllState from writing new automobile policies, Insurance Commissioner Kevin McCarthy has expanded the order and suspended AllState from writing new policies in all its lines of business. That means there will be no new life, homeowners, auto, renters, etc. insurance. This will remain in effect until AllState complies with subpoenas served on October 16, 2007. Those subpoenas asked for documents dealing with the company’s use of catastrophe risk-modeling programs used to determine homeowners insurance rates. AllState is currently being fined $25,000 a day in Missouri for a similar refusal. AllState is hurting it’s agents the most, since they will no longer be able to earn commissions on new policies. If AllState has nothing to hide, they should comply with the state’s request.
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