INSURANCE

Allstate Dropping 300,000 Policyholders: Stunned by Hurricane Andrew, Allstate Insurance Co. plans to drop about 300,000 Florida policyholders and wants to raise rates for those it keeps. About one-quarter of Allstate’s holders of homeowner, renter and condo insurance in Florida would lose their coverage under the plan. But the company, Florida’s second-largest home insurer, said it would not cut off policyholders in areas of Dade County battered by the Aug. 24 storm. Allstate also said it will seek rate hikes, perhaps as large as 40%, “to more adequately reflect hurricane exposure.” The company paid $1.65 billion in claims related to Andrew. State Insurance Commissioner Tom Gallagher ordered an immediate investigation of Allstate’s plans.