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Florida's insurance regulators given powers to suspend new policies by Allstate

The Office of Insurance Regulation suspended Allstate from writing new policies in January because it did not supply pricing information. The state wants documents to determine why Allstate's property insurance rates had not dropped after a state law designed to reduce premiums that rose due to hurricanes in 2004 and 2005.

Allstate Corp., based in Northbrook Ill., was able to keep writing new business as it appealed. The state said the company will now have to immediately comply after Friday's decision by the First District Court of Appeal in Tallahassee. The court said the suspension would end if Allstate produced the documents.

But Allstate said it believed the court's ruling was not final, so it would continue to write new business.

"We are very disappointed in today's ruling and disagree with the Court's opinion. We continue to work with the Florida Office of Insurance Regulation and have produced more than 400,000 pages to date in response to their subpoenas," the company said.

Insurance Commissioner Kevin McCarty suspended Allstate a day after he abruptly ended a scheduled two-day hearing to get information from company executives.

The company carries roughly 300,000 homeowners policies in the state, many in central Florida away from the riskier coastal areas.

Allstate shares fell 12 cents to $49.06 in afternoon trading on Friday.