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.