NU Online News Service, April 13, 11:38 p.m.EDT

Allstate will becharging Mississippi homeowners an average of 19.4 percent more forinsurance.

The Mississippi Insurance Department (MID) confirmedCommissioner Mike Chaney approved the increase for Allstate, whichoriginally requested a 65 percent average statewide increase forhomeowners' insurance last year.

Chaney denied Allstate's first request and asubsequent request for a 44 percent rate hike. The commissionersaid he would not approve the filing without a court order.

The new rate is expected to take effect in June. It marks theend of some contentious haggling over rate increases between Chaneyand Allstate.

Chaney accused the insurer of trying to price its wayout of Mississippi and said Allstate was asking policyholders tomake up for "management mistakes." He added thatAllstate's catastrophe model has never been proven to be correctand an actuarial report concluded the insurer was not due for morethan an 18 percent increase.

Allstate fired back, saying that another actuarial reportcommissioned by the MID found that the rate hike was appropriateand reflected Allstate's increase in non-hurricane andnon-wind-related claims and claim costs. The insurerrequested a hearing, which would have been thefirst in MID's history on a rate denial.

Chaney could not immediately be reached for comment.

With an 11.8 percent market share, Allstate was thethird-largest writer of homeowners' multiperil insurance inMississippi in 2010, according to HighlineData. State Farm is the largest with 25.5 percent, andSouthern Farm Bureau is second with 16.4 percent.

Highline Data is a part of Summit Business Media, which alsoowns National Underwriter.