This week, Florida Insurance Commissioner Kevin McCarty announced that he is suspending Allstate Insurance companies (corporate spokesman at right) from writing new insurance in Florida. McCarty's decision follows Allstate's refusal to comply with subpoenas served October 16 by the Office of Insurance Regulation.
The subpoenas seek disclosure of the McKinsey Documents, in which McKinsey & Co. instructed Allstate on how to systematically underpay claims starting in the mid 1990's. The content of the documents is so explosive that Allstate has already ignored a $25,000 per day fine in Missouri for its ongoing failure to provide the McKinsey Documents in that state.
Taking peoples' premiums and paying legitimate claims is called the "business of insurance." Taking peoples' premiums and refusing to pay legitimate claims is called "theft." I only wish more states' insurance commissioners and elected officials would stop these pirates. Not gonna happen here in Texas for a long, long time...
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