Allstate Texas Lloyd's, in a settlement with regulators, will pay $71.3 million in refunds to Texas homeowners they insure, it was announced yesterday.

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

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

Terms of the settlement call for the insurer to pay refunds to policyholders totaling $36.8 million for new and renewal policies written between Dec. 1, 2004 and April 23, 2006. These dates reflect the period of time during which Allstate was charging a rate that TDI believed was excessive, the department said. Refunds are to be mailed by Nov. 1.

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

TDI said the dates reflect the period of time during which Allstate's August 2007 rate filing was in effect. Allstate estimated the value of these refunds and credits to policyholders to be $14.8 million. These credits or refunds are to be mailed out by Nov. 1.

Allstate said it will reduce its homeowners insurance rates by 3 percent statewide for new and renewal policies written between June 2, and at least June 1, 2009.

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

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

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

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Allstate To Refund $71.3 Million To Texas Homeowners

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