Wind and Hail Coverage

Baton Rouge, LA: (Feb-21-08) State Insurance Commissioner Jim Donelon filed a lawsuit against Allstate Corp., alleging that the company had wrongfully canceled insurance coverage for hundreds of customers in south Louisiana, after Hurricane Katrina. Sources stated that Donelon's office fielded complaints from Allstate customers who say they lost wind and hail coverage after they switched from one Allstate company to another. Allstate had argued that switching to a different division of the company constituted creation of a new policy, allowing cancellations under Louisiana law. State officials claimed that with limited exceptions, state law bars insurers from canceling policies in effect for three years or longer. But Allstate had claimed the law doesn't apply to customers who switched. As part of a settlement reached, Allstate Corp. agreed to restore insurance coverage for hundreds of customers and pay $250,000 to resolve disputes over cancellation of south Louisiana homeowner policies. [YAHOO: ALLSTATE INSURANCE]

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Published on Feb-23-08