Allstate ordered to stop selling new car insurance policies in Florida

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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    

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