Even Liberal Newspaper Agrees!

I hate to admit it but even the St Petersburg Times agrees with me! Never would have thought that! Of course I have highlighted in red the words or phrases that I just love!

In an op-ed column dated 1/18/08 the title reads: Allstate's Arrogance Merits Tough Action. It goes on to say that to read the 51-page response of Allstate to a subpoena for vital records is to understand why Florida insurance Commissioner Kevin McCarty "had little choice". The company, repeating the words "Allstate objects" no less than 122 times, issued the equivalent of a "corporate kiss-off". Given the scope of the state's property insurance crisis and the breadth of Allstate's indifference, McCarty had to act.

It goes on to say that the decision to suspend all of Allstate's licenses to sell new insurance, including lucrative automobile policies, is being criticized by some industry observers as a political stunt. But Allstate itself is responsible. Its arrogant nonresponse and its history of corporate intransigence put McCarty on notice.

State government, after all, has put its own money at risk in an attempt to lower soaring property insurance, and lawmakers were told their 2007 law should result in substantial rate reductions. Allstate, instead, responded by requesting a 42% average statewide rate increase.

"Is the company trying to profiteer on the backs of ratepayers and taxpayers?"

According to a new study, the property and casualty insurance industry nationally has enjoyed four straight years of record profits while paying out a declining share of premiums to policyholders. Allstate itself has been shedding homeowner policies in such a way as to raise the question of whether it is trying to eliminate all risk.

The company has now evaded a Missouri court's contempt order for four months. The court ordered Allstate to turn over records similar to ones Florida is seeking, and the company does nothing even as the fine grows at $25,000 a day.

Allstate may want to hide some of its more unseemly business practices, such as its reported effort to cheat storm victims of full compensation they are due. But McCarty has legitimate questions, including the conveniently exorbitant storm-loss models they employ for rates, that deserve full and honest answers.

The state Senate is waiting in line to get answers, and Allstate now hides the truth at its own peril. As long as it continues to act like a rogue corporation, it will be treated as one. Consumers, as well as taxpayers, can only be left to wonder. What is Allstate hiding?

Today I love the St Pete Times!