Allstate, Farmers, Subpoenas Due Tomorrow
By Daniel Hays
NU Online News Service, July 24, 1:42 p.m. EST?Two large insurers, subpoenaed by the Texas Department of Insurance for copies of their latest underwriting guidelines for home coverage, must supply the material tomorrow, a department spokesperson said.
The material was sought by Commissioner Jose Montemayor from Farmers Insurance Co. and Allstate Insurance, after published reports that the companies were not issuing new policies to owners who had filed water damage claims in the past three years, said Jim Davis with the department.
Mr. Montemayor, in a statement reported by the Austin American Statesman, said, "At first blush, their underwriting changes appear to be unfair trade practices in violation of our laws."
The underwriting material, Mr. Davis said, is regarded as a privileged company secret and will be kept under lock and key.
Mr. Montemayor, he said, simply wants to "get a grasp on what's going on."
Water damage, which can result in expensive mold remediation claims, has been an issue in Texas ever since a jury their issued a $32 million award against Farmers in a mold infestation case.
Farmers and Allstate, in that order, are the second- and third- biggest home insurers in the state.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.