Louisiana Commissioner of Insurance Jim Donelon, Governor Kathleen Blanco and Allstate President Thomas Wilson met July 31 at the company’s headquarters in Northbrook, Ill., in an attempt to resolve a dispute over the company’s threat to end wind and hail coverage for 30,000 policyholders in 18 coastal parishes.
After the meeting, Donelon said Allstate indicated it will continue to operate in the state, but that more work is necessary regarding the impasse over the wind and hail coverage, the Louisiana Department of Insurance reported.
“I’m glad that the president and top management of Allstate have confirmed that Allstate is not leaving the state,” Donelon said in LDI’s announcement.
Donelon requested a meeting after Allstate announced plans to drop wind and hail coverage in some parishes. He says consumer protection statutes prohibit any such move by Allstate to change or cancel a policy that has been in effect for more than three years.
“It is a law unique to Louisiana that has been on the books since 1992,” Donelon said.
Associated Press that the state law deals with cancellations and nonrenewals, not the type of coverage changes to which Donelon objects.
Allstate wants to drop wind and hail coverage in Ascension, Assumption, Cameron, Iberia, Jefferson, Lafayette, Lafourche, Orleans, Plaquemines, St. Ber-nard, St. Charles, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Terrebonne and Vermilion parishes.
“I made our position clear to Allstate that we will vigorously resist any effort to cancel the wind and hail portions of homeowner’s policies in violation of state law,” Donelon said.
Topics Louisiana
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