Allstate to Pay $30M to Californians for 2003 Wildfire Claims

June 27, 2005

Allstate Insurance Co. will be opening its pocketbook and reportedly paying some $30 million to approximately 250,000 Californians who claimed they were overcharged for vehicle and home policies after the 2003 wildfires that hit Southern California, according to the Los Angeles Times.

The $30 million accounts for the total amount that policyholders were overcharged, with an average refund set around $120. According to California Insurance Commissioner John Garamendi, customers will not be getting restitution as part of the deal.

Allstate reportedly accepted no wrongdoing but also will fork over $4 million in fines to California’s Insurance Department to better relationships with the agency, the paper added.

Garamendi was reported in the Times as saying that the insurer broke laws as a result of partially setting its rates on consumer credit scores and by not coming through with discounts.

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