Allstate Gets Time in Wind-Hail Fight

January 30, 2008

Allstate has been granted more time by Louisiana officials to gather data about the number of homeowners whose wind and hail coverage was dropped on technicalities.

Warren Byrd, the state insurance department’s executive counsel, said Allstate asked for an extension until Feb. 1 so the company could figure out exactly how many longtime customers may have been affected by an administrative switch from Allstate Insurance Co. to Allstate Indemnity Co. on a good-credit discount that cost them their coverage against hurricanes and hailstorms.

Allstate also requested a meeting to discuss its views and why the department believes these policies were improperly canceled. The meeting will take place later this week.

“I thought that was wise thing to do. If we can resolve something in a potentially positive way, I think we’re a little further down the trail,” Byrd said. “We are meeting, we are progressing. It’s a positive step.”

In December, the insurance department had ordered Allstate to reinstate the policies of longtime customers whose wind and hail coverage was dropped. The initial deadline of Jan. 18 was extended until last Friday at Allstate’s request.

Information from: The Times-Picayune,
http://www.timespicayune.com

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