Allstate barred from selling new policies in Fla.

Northbrook-based Allstate Corp., the largest publicly traded U.S. home and auto insurer, won't be permitted to sell new policies in Florida until it complies with subpoenas for documents related to the company's requested rate hikes.

Existing policyholders won't be affected, according to a statement today from Florida Insurance Commissioner Kevin McCarty. The company previously stopped adding residential customers in the state in an attempt to reduce potential losses from hurricanes. Allstate had been selling new auto policies.

Allstate failed to provide documents demanded by Florida after the insurer asked to boost rates by as much as 42 percent, the state's Office of Insurance Regulation said. McCarty yesterday stopped a hearing in Tallahassee, citing a "lack of cooperation" by the company.

"In view of Allstate's ongoing, blatant disregard of our subpoenas, I have little choice but to take action that will send a clear message," McCarty said in the statement.

The Florida legislature approved an expansion of its state-run reinsurance program last year in an attempt to reduce insurance rates that had soared since the 2004 hurricane season. The reinsurance is offered at below-market prices, and every eligible insurer is required to apply for rate changes reflecting the expected savings, whether they purchase the coverage or not.

"Through this whole process we worked very diligently to provide what the state requested," Adam Shores, a spokesman for Allstate in Florida, said in an interview Tuesday after the hearing was canceled. Shores didn't immediately return a call seeking comment today.

Allstate fell 53 cents, or 1 percent, to $50.64 at 10:24 a.m. in New York Stock Exchange composite trading. The stock has declined about 21 percent in the past 12 months.

Only State Farm Mutual Automobile Insurance Co., based in Bloomington, sells more home and auto coverage than Allstate in the U.S. State Farm is owned by its policyholders.