The Texas Department of Insurance reported that on March 8, 2007, the Travis County District Court affirmed an earlier order by Texas Insurance Commissioner Mike Geeslin requiring Allstate Texas Lloyds to reduce its homeowners insurance rates by 5 percent. The Court also ordered Allstate to refund overcharges to policyholders.
This litigation was initiated in December 2004 when the Commissioner disapproved Allstate’s proposed rate increase and the Department issued a Notice of Hearing to disapprove Allstate’s current rates. These disapprovals were based on an actuarial analysis by the Department, which found Allstate’s homeowners rates to be excessive, unreasonable and unfairly discriminatory.
The order also requires Allstate to refund to policyholders the amount overcharged since December 2004, including interest on the overcharged amount at the annual rate of 11.25 percent. The Department estimates that the amount of refunds currently owed to policyholders is more than $56,000,000.
Source: TDI
Topics Texas Pricing Trends Homeowners
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