A state district court has affirmed an order by the Texas insurance commissioner to make Allstate Texas Lloyds reduce homeowners insurance rates by 5 percent and refund policyholders more than $56 million, the Texas Depart-ment of Insurance said March 13.
The order from last week said that Allstate must refund policyholders the amount overcharged, in-cluding interest, since December 2004 when Texas Insurance Commis-sioner Mike Geeslin disapproved a rate increase proposed by the company.
TDI said an actuarial analysis found Allstate’s homeowners rates to be excessive, unreasonable and unfairly discriminatory.
In May, Geeslin signed an order requiring Allstate to reduce the rates.
Joe McCormick, a spokesman for Allstate in Texas, said that the company already reduced rates by 5 percent last year after the commissioner’s order. He said that the company disagrees with the refund and takes issue with the way the state insurance department analyzed its rate.
“Our rates are reasonable and competitive,” said McCormick, who added that the company wants to make sure it’s in the best position to protect its customers.
He said that the company is considering its options, which could include an appeal.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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