New York State
|ISSUED 9/04/2007||FOR IMMEDIATE RELEASE|
Allstate Cited for Method Used for Not Renewing Coastal Homeowners Policies; Public Hearing Set
The New York State Insurance Department has issued a citation to Allstate Insurance Company and its affiliates. The citation was issued following Allstate's refusal to comply with a Department Circular Letter issued on August 28, 2007, which directed all property/casualty insurers to discontinue the practice of non-renewing homeowners insurance policies based upon whether or not the policyholder had other insurance business, such as automobile or life insurance, with the insurer or its affiliates. The Department considers such conditioning of renewals of homeowners insurance to be a violation of the anti-rebating and anti-discrimination provisions of Insurance Law § 2324.
The citation directs Allstate to appear at an administrative hearing at the Insurance Department on September 19, 2007 to show cause why a formal order should not be made requiring Allstate to discontinue its practice of conditioning homeowners insurance renewals on the existence of other insurance business, to reinstate policies that were improperly non-renewed, and to pay civil penalties for violating the Insurance Law.
The text of the citation is attached.
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