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By Gregory Boop, About.com Guide to Business Insurance

Florida vs. Allstate

Friday April 18, 2008

Just to keep everyone updated on the continuing dispute between Allstate and the State of Florida. On April 4, 2008, the District Court of Appeal, First District, State of Florida, ruled that the state was within its rights to impose a suspension on Allstate for failing to comply with certain subpoenas and document requests.

As I noted in my post on April 7, 2008, the State of Florida took the position that the ruling meant the suspension went back into effect immediately. Allstate disagreed, arguing that the court allowed briefing on the issue until April 14. The court clarified its Order allowing briefing on the matter and staying the suspension until after the briefing. Allstate filed its 45 page brief asking for reconsideration or the right to take the issue to the Florida Supreme Court and Florida responded with its 6 page brief.

So, what does this mean? As it stands the suspension is stayed until the court considers the briefs. I want to clarify that the suspension has no effect on Allstate's ability to serve current customers in Florida. The suspension would only affect its ability to write future business until it complied with Florida's subpoena and document demands.

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