Allstate currently faces contempt charges and a $25,000-a-day fine in Missouri that has grown to more than $3 million, and will continue to grow while a civil lawsuit meanders toward a trial date some six months from now.
McCarty said, “If Allstate is willing to pay $25,000 per day in fines to a Missouri court for its ongoing failure to provide similar documents, it’s obvious to me that it will take more than a monetary sanction to get them to comply with our subpoenas.”
Some of the records in dispute are the “McKinsey documents,” approximately 12,500 pages of text prepared for the insurer by consultant McKinsey & Co. in the 1990s.
Plaintiff lawyers allege the McKinsey documents describehow Allstate established a claims payment system that shortchanges clients while earning big profits, but Allstate says that the documents are trade secrets used to create policies and claims procedures.
In light of the situation, the insurer released a statement in Florida, saying: “Allstate is committed to working diligently with the Office of Insurance Regulation (OIR) to create solutions and ensure there is a healthy insurance market for Florida consumers.
We were surprised at the OIR’ s actions yesterday and today based on our dealings with them over the course of several months and dozens of phone conversations.
Since receiving the subpoenas, Allstate has produced nearly 40,000 pages of information and will continue to produce responsive documents to the OIR on a rolling basis.
We have not yet received an order and are evaluating our options. At this time, it is not clear how this action will affect Allstate or the more than 1,100 Allstate agents in Florida who are small business owners and employers.
Allstate remains committed to providing service to our nearly two million customers in Florida.”