Commissioner Calls on Allstate CEO to Discuss Plan to Shed La. Coverage

Louisiana Commissioner of Insurance Jim Donelon announced he has requested a meeting with Allstate Insurance Company CEO Edward Liddy after failed attempts by company officials to convince the Commissioner of the legitimacy of their plan to drop wind and hail coverage on thousands of Louisiana policyholders.

Donelon calls the plan illegal, and vows to fight it in court if necessary.

Company officials recently raised the specter of exiting the Louisiana homeowners insurance market altogether if their plan to drop wind and hail coverage in 18 parishes affecting 30,000 home owners is blocked.

Donelon says he hopes a meeting with the Northbrook, Ill.-based Liddy will be more productive. “I will meet any time, any where with Allstate’s CEO to see if we can work out something that balances Louisiana consumer interests with company interests and is in compliance with Louisiana law,” says Donelon. “Hopefully reasonable minds will prevail.”

Donelon says the state’s consumer protection statutes prohibit any such move by Allstate to unilaterally change or cancel a policy that has been in effect for more than three years. It is a law unique to Louisiana that has been on the books since 1992.

Allstate, the state’s second largest insurer, provides homeowners coverage to approximately 220,000 policyholders in Louisiana.

Donelon plans to convene a meeting next week of insurers writing homeowners coverage in the state to discuss the ramifications should Allstate abandon all or part of the homeowners market.

“We need to determine what can be done to make sure that insurance is available to consumers throughout the state should Allstate create a void,” says Donelon.

Source: Louisiana Department of Insurance

Topics Louisiana Homeowners Allstate