Here is the consumer protection law referenced in the article:
1471. Homeowner\’s insurance; acts of God
No insurer shall cancel, fail to renew, or increase the amount of the premium, EXCEPT UPON AN AREA-WIDE RATING BASIS AT THE BEGINNING OF A NEW POLICY PERIOD, on a homeowner\’s policy of insurance based solely upon a loss caused by an \”Act of God\”. An \”Act of God\” shall mean, in this Section, an incident due directly to natural causes and exclusively without human intervention.
The portion in CAPS is where I think Allstate will have a case against the Commissioner\’s mandate. The Commissioner\’s job is to ensure a viable insurance market in the state, not to grandstand for the sake of votes. Unfortunately, politics destroys integrity.
Why was Farm Bureau Insurance allowed to do the exact same thing that All State wants to do? Why wasn\’t this question brought up in the article? If ALL STATE and the Farm Bureau get this inacted, how far behind will State Farm and all others be???
I highly doubt that an Allstate exec would give that type of verbal ultimatum to the insurance commissioner, I bet someone at Allstate said something to the commissioner to the effect, and the commissioner is doing a little political grandstanding. Both of guilty here. I do not besmirch Allstate from wanting to make a profit, but they also need to play by the rules as well. I don\’t think it is right that they can skim the cream off the top and leave the rest for someone else to pick up. If you want to write with the big boys, then you have to take your lumps as well. Would Allstate leave LA? I doubt it. I have never been a big fan of Allstate here in CA, as they constantly underinsure the homes in order to beat prices. They are doing their clients a disservice at best. It will be interesting to see how this gets solved.
I\’m always bemused about the ranting and raving about \”corporate profits\” – management\’s role is to maximize value for the shareholders, and the laws in this country expose boards of directors and management to D&O suits if they don\’t. The obligation of a stock insurer is to comply with laws and regulations and pay claims as required by the contract, period. Not only is there no obligation, but there is a potential legal penalty, for ignoring the shareholders.
Does anyone know what the consumer protection law referenced in the article actually says?
Louisiana Farm Bureau is a different situation because the company was impaired. If they weren\’t allowed to do what they did, the company wouldn\’t have been able to continue operations.
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Here is the consumer protection law referenced in the article:
1471. Homeowner\’s insurance; acts of God
No insurer shall cancel, fail to renew, or increase the amount of the premium, EXCEPT UPON AN AREA-WIDE RATING BASIS AT THE BEGINNING OF A NEW POLICY PERIOD, on a homeowner\’s policy of insurance based solely upon a loss caused by an \”Act of God\”. An \”Act of God\” shall mean, in this Section, an incident due directly to natural causes and exclusively without human intervention.
The portion in CAPS is where I think Allstate will have a case against the Commissioner\’s mandate. The Commissioner\’s job is to ensure a viable insurance market in the state, not to grandstand for the sake of votes. Unfortunately, politics destroys integrity.
Why was Farm Bureau Insurance allowed to do the exact same thing that All State wants to do? Why wasn\’t this question brought up in the article? If ALL STATE and the Farm Bureau get this inacted, how far behind will State Farm and all others be???
I highly doubt that an Allstate exec would give that type of verbal ultimatum to the insurance commissioner, I bet someone at Allstate said something to the commissioner to the effect, and the commissioner is doing a little political grandstanding. Both of guilty here. I do not besmirch Allstate from wanting to make a profit, but they also need to play by the rules as well. I don\’t think it is right that they can skim the cream off the top and leave the rest for someone else to pick up. If you want to write with the big boys, then you have to take your lumps as well. Would Allstate leave LA? I doubt it. I have never been a big fan of Allstate here in CA, as they constantly underinsure the homes in order to beat prices. They are doing their clients a disservice at best. It will be interesting to see how this gets solved.
Allstate is famous for actions such as this. Doesn\’t surprise me at all. I hope the commissioner burns them good.
I\’m always bemused about the ranting and raving about \”corporate profits\” – management\’s role is to maximize value for the shareholders, and the laws in this country expose boards of directors and management to D&O suits if they don\’t. The obligation of a stock insurer is to comply with laws and regulations and pay claims as required by the contract, period. Not only is there no obligation, but there is a potential legal penalty, for ignoring the shareholders.
Does anyone know what the consumer protection law referenced in the article actually says?
It wasn\’t brought up because Insurance Journal doesn\’t know how to report news.
Louisiana Farm Bureau is a different situation because the company was impaired. If they weren\’t allowed to do what they did, the company wouldn\’t have been able to continue operations.
I would like to know if this is the first time that Allstate exclude wind and hail in their policy. I like to know please
I would like to know if this is the first time that Allstate exclude wind and hail in their policy. I like to know please
I would like to know if this is the first time that Allstate exclude wind and hail in their policy. I like to know please