Allstate Settles with Poisner on Homeowners’ Coverage

0

California Insurance Commissioner Steve Poizner has quietly dropped an effort to seek refunds for Allstate Corp. policyholders who might have paid too much for their homeowners’ coverage in recent years. Critics immediately denounced his decision.

On July 10, Poizner announced that Allstate had been ordered to slash its homeowners’ rates by 28.5% for policies that begin or renew after July 30. But still pending, his office said at the time, was whether a refund would be ordered for previous years.

In an unannounced legal settlement July 31, Allstate agreed not to contest Poizner’s rate cut order. In return, the Republican commissioner agreed to “not take any action” based on allegations that Allstate previously charged rates that were excessively high.

Poizner’s decision to avoid a confrontation with the state’s third-largest property insurer, which was not released by his office, contrasted with his tough public stance toward the company in May 2007.


& #8226;


Read the full Los Angeles Times story

.

No posts to display