Released February 20, 2008
Commissioner of Insurance Jim Donelon announced a resolution
today between the Louisiana Department of Insurance (LDOI) and
four Allstate companies over insurance disputes, which includes
the opportunity for hundreds of property insurance policyholders
to be reinstated and a $250,000 company fine. Donelon says he
signed the Consent Agreement and Stipulation yesterday between
the LDOI and Allstate Insurance Company, Allstate Indemnity Company,
Encompass Insurance Company and Encompass Indemnity Company.
As part of the resolution, Allstate will pay a $250,000 fine
for a 2006 property inspection program that resulted in the cancellation
of more than 4,700 homeowners insurance policies in Jefferson,
Orleans, St. Bernard and Plaquemines Parishes. Of the 588 policyholders
who filed written complaints with the LDOI, several hundred were
reinstated by Allstate.
Commissioner Donelon says the other disputes involve the cancellation
of wind and hail coverage on policies moved from Allstate Insurance
to Allstate Indemnity, and from Encompass Insurance to Encompass
Indemnity. The several hundred Homeowners whose policies were
in effect for three or more years with Allstate Insurance and
Allstate Indemnity combined, or with Encompass Insurance and
Encompass Indemnity combined will be offered the opportunity
to have their policies reinstated with full wind and hail coverage.
The Allstate and Encompass companies will notify their agents
about the reinstatement process. Commissioner Donelon says impacted
policyholders should contact their insurance agent as soon as
possible for reinstatement.