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Insurance Commissioner
Orders Allstate To Reduce Rates
May 22, 2006
AUSTIN – Texas
Insurance Commissioner Mike Geeslin today signed
a Commissioner’s Order requiring Allstate Texas
Lloyds to reduce rates for all Texas
policyholders by 5 percent. This action follows
a contested hearing at the State Office of
Administrative Hearings after which the
Administrative Law Judges issued a Proposal for
Decision regarding Allstate’s rates.
The order also requires Allstate to refund to
policyholders the amount overcharged since
December 2004, including interest on the
overcharged amount at the annual rate of 13.25
percent.
In April 2006, Allstate Texas Lloyds filed a
statewide 4.8 percent reduction with the Texas
Department of Insurance. Allstate must lower its
current filed rate by an additional .2 percent
(two tenths) to equal the rate reduction ordered
by the Commissioner.
This action stems from the original 2003 rate
reduction and refund order, in which Allstate
reduced rates and made refunds to policyholders.
Part of the 2003 order required a rate filing
subsequent to the initial rate reductions and
refunds as a means of “true up” based on
actuarial analysis. The subsequent filing was
the subject of the recent contested hearing. |
