NU Online News Service, Sept. 21, 3:15 p.m.EDT

Mississippi Insurance Commissioner Mike Chaney said he will notapprove Allstate's proposed 44 percent average statewide homeownersrate increase without a court order.

The commissioner said he has denied the insurer's filing toincrease rates, which he has been reviewing since March. It is thesecond time he has denied the insurer's attempt to raise rates.Allstate originally asked for a 65 percent average statewideincrease and was turned away by Mr. Chaney.

Allstate, it seems, no longer wants to be in Mississippi, Mr.Chaney told NU Online News Service.

"What sealed the deal was that its [chief executive officer]said they are going to price themselves out of the market, nomatter what," Mr. Chaney said. "Allstate will not negotiate for areasonable rate, period."

Actuaries in the Mississippi Insurance Department (MID)concluded the rate requested was not justified.

But company spokeswoman April Eaton said Allstate needs the rateincrease to keep up with a rise in frequency of claims related tofires, burglaries, water damage and liability.

"We think the rate as submitted is justified," Ms. Eaton said."We need to obtain the right rate for the risk to make responsiblebusiness decisions and protect our policyholders."

Ms. Eaton said she "doesn't exactly know" what the next stepwill be for Allstate in Mississippi, but the insurer will try andcontinue to work with the state insurance department to findsolutions.

MID spokesman Joseph Ammerman said Allstate has 30 days torequest an appeal.

Allstate had 12.6 percent of the homeowners multiperil market inMississippi, third to State Farm (25 percent) and Southern FarmBureau (15.8 percent), according to Highline Data (www.highlinedata.com), part ofSummit Business Media, which owns NationalUnderwriter.