Allstate wins OK in Florida

Allstate Corp., the largest publicly traded home and auto insurer in the U.S., won emergency approval from a Florida court Friday to resume selling insurance in the state.

Allstate had filed a motion to reverse the decision by state Insurance Commissioner Kevin McCarty this week blocking it from selling new policies. McCarty said the company failed to provide documents sought by regulators probing possible collusion in setting prices and dealing with claims.

McCarty's office had "abused its power by issuing an emergency order that is intended to function as a punitive stick," Northbrook-based Allstate argued in its motion. The insurer welcomed the appeal court's decision.

McCarty's office last year subpoenaed Allstate seeking materials detailing how the insurer sets prices and resolves claims. Allstate has been shedding residential customers in Florida since 2004 while expanding its auto business in the state, which accounts for about 10 percent of its car policy sales.

The Florida state court in Tallahassee gave McCarty's office 10 days to explain why Allstate's license should be suspended. The court's ruling was disclosed by Tom Zutell, a spokesman for McCarty, who had no immediate comment.