Posted On: May 24, 2007, 1:56 pm CDT

Posted By: Mark Steckbeck

I find it curious that the California regulator would expend resources in forcing the refund "excessive rates," at least some of which will presumably used to build surplus...funds that will be used to pay policyholder claims in the event of a disaster. What happened to the free market sytem where customer could simply take their business elsewhere if they did not like the price of the product? By the way, I wonder how the Commissioner will decide what is an "excessive rate." Is that with or without taking into account the next cycle of floods, mudlsides, droughts, fires and earthquakes? If somwhere down the road the company finds itself paying out more than it collected in premiums, I don't suppose the Commissioner will come back and hold more permit it to recoup this refund on the grounds its rates turned out to be inadequate. I respectfully suggest that if the Allstate's rates are too high, consumers would be better served if the Department of Insurance posted its competitor's rates on its website and let the market decide.