Allstate Lifts Alaska HO Moratorium

NU Online News Service, Sept. 8, 1:27p.m. EDT--Allstate Insurance said it is approaching anagreement with regulators on policy language to cover mold damageand is lifting a moratorium on writing new homeowners insurancebusiness in Alaska.

The announcement was made Friday. In a statement, theNorthbrook, Ill.- based carrier said it acted "as a result ofproductive discussions with the Alaska Division of Insuranceregarding their proposed mold endorsement." The lifting waseffective Thursday.

"Since we declared the homeowners insurance moratorium, we havehad several favorable meetings with Insurance Director Linda Halland her staff to discuss approval of our mold endorsement," saidElizabeth Moceri, regional counsel for Allstate's Northwestregion.

Ms. Mocerci said the discussions "have been positive and, as aresult of the cooperation of Director Hall and her staff, we arecomfortable that we will be able to work together to resolve ourdifferences and gain approval of an endorsement that will protectAllstate's customers from opportunistic mold lawsuits, which wouldresult in higher rates as has happened in other states. Because ofthat progress, we have lifted the moratorium."

Allstate instituted its moratorium on Aug. 6, saying it wasseeking to limit its exposure because homeowners policies did nothave mold endorsements. The company said it had been innegotiations with the division for the past 18 months on theproposed changes.