By Michael Peltier

TALLAHASSEE, Fla., Oct 16 (Reuters) - Allstate Corp, the largest publicly traded U.S. insurer, was subpoenaed on Tuesday by Florida regulators in an ongoing probe into possible industry collusion to thwart state efforts to slash homeowner insurance rates.

Calling the industry "tenacious" and "greedy," Florida Gov. Charlie Crist, a Republican, said the investigation would shed light on the failure of Allstate and others to provide meaningful rate relief to Florida customers despite legislation earlier this year to lower rates.

The state is ordering Allstate Floridian, Florida's second largest private property insurer, and its parent, Allstate Corp <ALL.N>, to turn over documents related to reinsurance activity and communications with modeling firms, rating agencies and trade associations.

State investigators have also ordered company representatives to appear under oath during two days of public hearings beginning Jan. 15.

Allstate is the latest company to come under the state's gaze. State Farm, the state's largest private property insurer, and two others companies were previously subpoenaed.

The state's top regulator said the investigation's goal is not only to scrutinize the company's activities in Florida but also to shed light on corporate and industry practices including rate hikes and cancellations that affect coastal property owners throughout the country.

"We are a bellwether state and this is happening along ... the coastline from Maine to Texas," said Kevin McCarty, director of the Office of Insurance Regulation.

"These companies are non-renewing business and putting pressure on regulators. We have a responsibility as Florida, a leadership state, to take whatever efforts are necessary."

Allstate Floridian said the subsidiary would cooperate in the investigation.

"Allstate Floridian remains confident in our business practices and our adherence to state law," said company spokeswoman Deb Clouser. "Most importantly, we remain committed to our customers and we must remain financially solvent to meet the promises we have made to them."

Florida lawmakers in January passed a series of reforms aimed at shoring up the property insurance market after it was rocked by a series of costly hurricanes in 2004 and 2005.

Among the reforms, lawmakers expanded the state-run property insurance company and boosted the state's hurricane reinsurance fund to $32 billion. Companies were required to pass on those savings to customers.

Instead, many companies have requested rate hikes, citing higher reinsurance costs and requirements from rating agencies. Allstate Floridian has requested a rate increase of nearly 42 percent.

"I'm a free market guy and I believe in people making a profit," Crist told reporters at a news conference announcing the subpoenas. "But I do not believe in the profiteering on the backs of our people."

State Farm last month reached a settlement agreement with Florida and agreed to cooperate with insurance officials during their ongoing investigation.

Cincinnati Financial Corp <CINF.O>, subpoenaed in September, had been called to testify at a hearing in Tallahassee on Oct 18. But the regulator's office said on Tuesday that had been canceled because of "a need to issue additional subpoenas for additional information."

Of special interest is Allstate's communications with insurance trade associations to determine if Allstate and other national companies are colluding to keep rates high, officials say.

"I'm not accusing anyone of doing anything, but we need to get to the bottom and the trade associations are going to be the keystone to that investigation," McCarty said.

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