Wednesday, May 23, 2007
The State Insurance Commissioner is making good on his promise to force a major insurance company to defend its rates. Steve Poizner says the review could lead to refunds for customers. From Sacramento, Jenny O'Mara reports.
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.
Poizner : 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.
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.