Insurance Commissioner to Review Rates
The State Insurance Commissioner is making good on his promise to force a major insurance company to defend its rates…. He says the review could prompt refunds for customers.
State Insurance Commissioner Steve Poizner is issuing an order to require Allstate Insurance to show its homeowner policy rates are not excessive. He'll hold a hearing as early as July. Poizner's action comes after the company announced this month it would not write new homeowner policies in California. Allstate is also seeking a rate increase which Poizner says is contrary to current trends.
"Given that all the other insurance companies that are competitors to Allstate are dropping their insurance rates in California, Allstate is moving the other direction so we do have reasons to be concerned that their rates are excessive…"
Poizner says if the company's rates are found excessive it would be the first time a retroactive refund would be ordered. In a statement Allstate said its current prices are competitive. As for the rate hike, the company says it's seeking its first increase in almost four years which would reflect the true costs of doing business in the state.