Donelon Calls on Allstate CEO to Discuss Company's Plan to Shed
Released: July 26, 2006
Commissioner of Insurance Jim Donelon has requested a meeting with Allstate Insurance
Company CEO Edward Liddy after failed attempts by company officials to convince
the Commissioner of the legitimacy of their plan to drop wind and hail coverage
on thousands of Louisiana policyholders.
Donelon calls the plan illegal, and vows to fight it in court if necessary.
Company officials raised the specter last Friday of exiting the Louisiana homeowners
insurance market altogether if their plan to drop wind and hail coverage in 18 parishes
affecting 30,000 Homeowners is blocked.
Donelon says he hopes a meeting with the Northbrook, Illinois-based Liddy will be
more productive. I will meet any time, any where with Allstates CEO
to see if we can work out something that balances Louisiana consumer interests with
company interests and is in compliance with Louisiana law, says Donelon. Hopefully
reasonable minds will prevail.
Donelon says the states consumer protection statutes prohibit any such move
by Allstate to unilaterally change or cancel a policy that has been in effect for
more than three years. It is a law unique to Louisiana that has been on the books
Allstate, the states second largest insurer, provides homeowners coverage
to approximately 220,000 policyholders in Louisiana.
Donelon plans to convene a meeting next week of insurers writing homeowners coverage
in the state to discuss the ramifications should Allstate abandon all or part of
the homeowners market.
We need to determine what can be done to make sure that insurance is available
to consumers throughout the state should Allstate create a void, says Donelon.