Allstate Receives Citation from NY State Insurance Department

As previously reported in the "Daily NewsFlash", the NY State Insurance Department issued a directive on August 28 calling for insurers to stop the practice of non-renewing homeowners policies based upon whether policyholders have other insurance business with the same carrier or its affiliates. Allstate Insurance Company received a citation from the department related to this very issue.

The department considers such conditioning of renewals of homeowners insurance to be a violation of the anti-rebating and anti-discrimination provisions of state Insurance Law.

An Allstate spokeswoman said the company responded to the department in writing and also attempted to make contact with the superintendent following the events of last week.

"In our written communication, we believe we addressed the concerns raised by the department. On Friday, Aug. 31, we received a hearing notice from the department. We are reviewing the document and will respond accordingly," Krista Conte said. "We respect our long-standing relationship with the (Insurance Department), and remain committed to working with them regarding our continued compliance with the law as we continue our catastrophe management program."

The citation directs Allstate to appear at an administrative hearing on Sept. 19.

Published on September 5, 2007