A Florida court said Tuesday it rescinded a decision in the state’s case against Allstate Floridian Insurance Company because the order was released prematurely in violation of its own operating procedures.
The order would have stopped Allstate’s agents from writing new business in Florida, but would not have affected existing policies.
Less than an hour after issuing the order Monday evening to deny Allstate’s appeal of a state-ordered suspension, the 1st District Court of Appeal withdrew it. The court blamed the mistake on a clerical error.
In Tuesday’s statement, the court said “the order was released prior to the 10 business days provided in the court’s internal operating procedures” on a motion for rehearing.
The earliest permissible date for the decision’s release should have been the 11th business day after the filing of the motion for rehearing, which would be April 29.
The court’s statement also said its order was withdrawn to allow the entire court the time authorized by court rules to consider the motion.
“Based on what the court’s press release says … it would be premature to speculate on anything until that happens,” said Adam Shores, spokesman for Allstate’s Florida companies.
Insurance Commissioner Kevin McCarty suspended Allstate 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.
The case has been on hold during legal arguments.
“The commissioner is eagerly awaiting the court’s final ruling,” Office of Insurance Regulation spokesman Ed Domansky said Tuesday.
Gov. Charlie Crist, who has criticized some insurance companies for what he sees as “gouging” Florida citizens, said Tuesday he hopes the court restores the order it rescinded.
Allstate carries roughly 300,000 homeowners policies in the state, many in central Florida away from the riskier coastal areas.
Topics Florida
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