Allstate Insurance Co. and its affiliates have agreed to comply fully with a directive by the New York State Insurance Department that insurance companies may not refuse to renew homeowners insurance policies based on whether a policyholder also has an automobile or life insurance policy with the same company, according to Insurance Superintendent Eric Dinallo.
On Aug. 28, Dinallo’s department issued a directive (Circular Letter 11) instructing all property/casualty insurers to discontinue the practice.
On Aug. 31, the department issued a citation to Allstate following what the department said was the company’s refusal to comply with the letter. The department called for a Sept. hearing and threatened fines and disciplinary action against Allstate. However, according to the department, Allstate has since agreed to fully comply with the circular letter, so the department will have no public hearing.
State officials had said previously that there would be no discussions until and unless Allstate first agreed to comply. “We are willing to dialogue with Allstate once they are in compliance,” a department spokesperson told Insurance Journal.
Allstate has said it believes it is within its rights to non-renew based in part on whether the insureds also have auto or life policies with the company. The non-renewal tactic is part of its strategy to reduce its coastal exposure. The insurer maintains that its practices comply with state insurance law.
Topics New York
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: Insurance Broker Valuations – The Elephant in the Room 
Chubb: Cyber Claim Severity Nearly Doubled for Large Businesses 
Tennessee Approves Smallest Drop in Workers’ Compensation Costs in Years 
US Senate Votes to Fund Most of Homeland Security After Shutdown Disrupts Airports From This Issue
