Allstate Denied Homeowners Rate Increase in Florida
The Florida Office of Insurance Regulation (OIR) has denied five Allstate homeowners insurance rate increases.
The OIR issued a notice of intent to disapprove homeowners filings of 43.4% from Allstate Floridian Insurance Co., 27.4% from Allstate Floridian Indemnity Co., 39.7% from Encompass Floridian Insurance Co., and 41.6% from Encompass Floridian Indemnity Co. A 36.5% dwelling fire rate increase from Encompass Floridian Insurance Co. was also rejected.
"Our action is based on a thorough review of the information previously provided by the companies and their testimony at the hearing," said Insurance Commissioner Kevin McCarty in a statement. "The rates proposed by the Allstate companies do not pass along all the savings reasonably available as a result of the expansion of the Florida Hurricane Catastrophe Fund."
Legislation, adopted in January, made lower-priced reinsurance available to insurers by expanding the cat fund. McCarty said expanded cat fund was intended to allow insurers to pass "significant savings to their policyholders."
Allstate may petition for an administrative hearing through the Division of Administrative Hearings.
Published on November 19, 2007
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