Allstate Texas Lloyd's, in a settlement with regulators, willpay $71.3 million in refunds to Texas homeowners they insure, itwas announced yesterday.

The Texas Department of Insurance and the Office of PublicInsurance Counsel said the agreement would settle all outstandingTDI litigation with respect to homeowners insurance rates.

Under the agreement, Texas Allstate policyholders are to receiveapproximately $71,300,000 in refunds, credits and rate reductions,TDI said.

Terms of the settlement call for the insurer to pay refunds topolicyholders totaling $36.8 million for new and renewal policieswritten between Dec. 1, 2004 and April 23, 2006. These datesreflect the period of time during which Allstate was charging arate that TDI believed was excessive, the department said. Refundsare to be mailed by Nov. 1.

Allstate is slated to give credits or refunds to policyholdersin the amount of 3 percent of premium for new and renewal policieswritten between Aug. 20, 2007 and June 1, 2008.

TDI said the dates reflect the period of time during whichAllstate's August 2007 rate filing was in effect. Allstateestimated the value of these refunds and credits to policyholdersto be $14.8 million. These credits or refunds are to be mailed outby Nov. 1.

Allstate said it will reduce its homeowners insurance rates by 3percent statewide for new and renewal policies written between June2, and at least June 1, 2009.

Allstate estimated the value to policyholders of this ratereduction to be $19,700,000. Allstate will apply rate reductionrates based on geographical areas to more appropriately reflectexpected costs in each area.

In addition, Allstate has agreed not to increase its homeownersinsurance rates during the period between June 2, 2008 and June 1,2009, barring extraordinary and unforeseen circumstances, TDIsaid.

Eligible policyholders who no longer have insurance throughAllstate will receive any refunds owed through company checks.Current eligible policyholders will receive any refunds owedthrough policy credits and if necessary company checks. All refundsand credits will be issued no later than Nov.1.