Allstate Texas Lloyds, an affiliate of the Allstate Corporation will issue refunds of 8.75 percent of the premium paid by its Texas home insurance customers for policies with effective dates from Sept. 7, 2003, through Sept. 6, 2004.
Announcing the refund, the company said it is part of an agreement between the Texas Department of Insurance (TDI) and Allstate. The impact of this one-time refund will be a return of approximately $60 million to nearly 686,000 Allstate customers in Texas. Under the agreement, Allstate already reduced its Texas homeowner rates by 10.1 percent in 2003.
“During a turbulent period, Allstate has stayed in the Texas home insurance market, weathered the storm and emerged as a leading provider of insurance protection,” stated Gary Briggs, Allstate Field vice president. “We’ve taken a stand in Texas by supporting our customers, creating new insurance choices and taking a disciplined approach to pricing and underwriting.”
For all eligible Allstate homeowner policyholders, the 8.75 percent refund, along with interest, will be issued as a credit on their next renewal statement. For those customers whose home is no longer insured with Allstate, a refund check will be issued.
Under SB 14, all home insurers in Texas were required to file their rates with the state. Allstate worked in cooperation with the TDI and agreed to rate level reductions in 2003 and the framework for a possible refund, giving the Texas market a vote of confidence that claims costs would stabilize and the market would become increasingly competitive.
Allstate, the state’s second largest insurer of homes, will continue to work with the TDI and other interested parties to encourage a healthy insurance environment for Texans.
“Allstate supports efforts to modernize the regulatory system to provide the benefits of more competition, choice, innovation and efficiency to consumers,” stated Justin Schmitt, Allstate Corporate Relations manager. “We’re committed to making our knowledge, experience and resources available to help our customers feel better protected today, and better prepared for tomorrow.”
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