The state of Maryland fined Allstate $100,000 yesterday andordered it to refund more than $17.5 million in premiums topersonal auto lines customers after finding Allstate did not complywith state law in disclosing reasons for rate increases.

The refunds are being sent to more than 20,000 current andformer Allstate customers, the state said.

The fines and refunds were ordered because Allstate sent premiumincrease notices between Jan. 1, 2003 and March 1, 2005 that didnot comply with a provision of state law requiring a description ofthe accident or violation that led to the increase, thecommissioner's office said.

The refunds average $850. State officials said they comprisedone of the largest refunds in recent history. The $100,000 finelevied on Allstate is also just below the $125,000 limit the agencyis allowed to impose.

The state said it acted based on a group of complaints to theMaryland Insurance Administration.

Debbie Pickford, a spokeswoman for Allstate's capital region,said that "We regret that some of our notices to policyholders werenot in compliance."

She said the company "did everything necessary to correct theproblem as quickly as possible to make sure our former and currentpolicyholders receive compensation."

Maryland Insurance Commissioner R. Steven Orr said that after aninvestigation, Allstate was given until Oct. 3 to auditpolicyholder records between Jan. 1, 2003 and March 1, 2005 andmake appropriate adjustments.

Ms. Pickford said all of the policyholders involved receivedletters advising them of an increase had a past accident orviolation that warranted a rate increase.

"Maryland law requires very specific statutory language aboutwhy exactly you are raising the rates," Pickford said. "We regretsome of the notices we sent were not in compliance with statelanguage. As soon as we found out about it, we did everything wecould to rectify it."