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17 01 2008

Allstate ordered to stop selling new car insurance policies in Florida

Posted by: Doug in Auto Accidents, Insurance Coverage


Allstate Sits on Documents Allegedly Tied to Profit Scheme
Abrams Landau clients, especially those in the “Sunshine State,” might be interested to learn that Florida insurance regulators have ordered Allstate to stop selling new auto insurance policies in that state because the insurer has refused to turn over documents detailing how the company sets rates and pays claims. Herndon lawyer Doug Landau points out that insurance companies make money by collecting premiums and then investing that money profitably.  If the insurance companies then can delay paying claims, and keep the money invested longer, then they can make more money, explains Virginia Trial Lawyer Landau.  The documents in question allegedly show a plan, developed by consulting company McKinsey & Co., for insurers to increase profitability by decreasing and delaying claims payments. Allstate is also paying a $25,000-a-day fine in Missouri for violating a court order to turn over the same documents.  Beatrice E. Garcia, Miami Herald  01/17/2008
Read Article: Miami Herald    

This entry was posted on Thursday, January 17th, 2008 at 6:58 pm and is filed under Auto Accidents, Insurance Coverage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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Douglas K.W. Landau is admitted to practice in DC, VA, CT, FL, and NJ. Abrams Landau services clients in Washington DC, Pennsylvania, PA, Maryland, MD, Virginia, VA (including Northern Virginia, Fairfax county, Loudoun county, Herndon, Reston, and more), Connecticut, CT, Georgia, GA, Florida, FL, New Hampshire, NH, New York, NY, New Jersey, NJ, Maine, Massachusetts, MA, Rhode Island, RI, North Carolina, NC, and South Carolina, SC.

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