August 23, 2007
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PUBLIC INSURANCE COUNSEL CALLS FOR PENALTIES ON ALLSTATE
AUSTIN—Public Insurance Counsel Rod Bordelon filed a petition today to impose penalties on Allstate Insurance Company for violation of insurance laws and bad faith rating practices. The petition asks for $25,000 for each policy renewed at the excessive and illegal rate as well as a penalty for implementing the rate prior to submitting the filing as required by law. In addition the petition asks for disapproval of the current rates charged by the two Allstate companies doing business in Texas, Allstate Texas Lloyds and Allstate Fire and Casualty.
On Monday, Allstate Fire and Casualty implemented a rate increase prior to filing the rate with the Department of Insurance (TDI) as required by law. In addition, a similar rate filing was previously withdrawn in June 2007 after objections were filed by OPIC. OPIC filed a petition for disapproval of Allstate’s current rates in January and again in June of 2007 arguing the rates were excessive at that time, and requested that the company be placed in prior approval status. On Monday, The Commissioner disapproved Allstate’s recent rate filing and placed the company under prior approval. However, no ruling was made as to the company’s current rates. “These rates are now and have been excessive for months”, said Bordelon, who as Director of the state’s Office of Public Insurance Counsel (OPIC), represents insurance consumers. Allstate continues to thwart the state’s efforts to regulate its rates and has shown an intent to disregard the Commissioner’s actions. It’s time we penalize Allstate for their actions and give their policyholders the lower premiums they deserve.”