Allstate and its Florida subsidiaries must use $84 million collected from state homeowners to buy reinsurance, according to an agreement signed with Florida Commissioner Kevin McCarty.
Mr. McCarty said the Office of Insurance Regulation originally disapproved the profit factor in the company's application for a rate increase. But that increase was then approved with the proviso that the company buys more reinsurance.
"If they don't use all of the funds for reinsurance, the money will be refunded to consumers," he said.
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