Settlement with Texas to cost Allstate $71 million
Posted on May 13, 2008
Texas customers of Allstate Insurance will get $71 million in refunds, credits and rate reductions for homeowner policies in a settlement that resolves legal disputes with the state over the rates dating to 2004.
The settlement involving Allstate Texas Lloyd's customers was announced by Texas insurance officials Monday.
Allstate will refund almost $37 million for new and renewal policies written between Dec. 1, 2004-April 23, 2006, a period when the state said its rates were too high.
Allstate also will reduce homeowners rates for Allstate Texas Lloyd's customers by 3 percent statewide for new and renewal policies written for one year beginning June 2. And it will credit or refund policy holders 3 percent between Aug. 20, 2007 and June 1.
The company agreed not to increase homeowner premiums from June 2 to June 1, 2009, barring extraordinary circumstances.