Allstate Cuts Iraq Vets A Break

Allstate Cuts Iraq Vets A Break

By Mark E. Ruquet

NU Online News Service, July 15, 2:44 p.m. EDT?While one national carrier said it would make changes to its automobile underwriting system so active duty servicemen and women are not punished for a lapse in coverage, other carriers have failed to take such action, a regulator said.[@@]

Jim Poolman, North Dakota's commissioner of insurance, among the first to take up the cause of returning G.I.s, said, "I'm pleased that Allstate is following our lead in making sure they are treating servicemen and woman appropriately and not punishing them for noncontinuance coverage while they are on active duty in Iraq and Afghanistan. I hope other companies follow their lead."

He said while other companies have said they will make changes to accommodate service personnel, they have not followed through on the underwriting end and made the necessary revisions to their underwriting systems.

"It is important for insurers to know that it is nice for them to talk the talk, but they need to change their systems to walk the walk," he remarked.

Allstate said today it has relaxed its automobile insurance underwriting guidelines for U.S. servicemen and women returning from military deployment in Iraq and Afghanistan.

The Northbrook, Ill.-based insurer said auto insurance applications from U.S. military personnel whose auto insurance policies lapsed solely due to their active duty deployment in Iraq or Afghanistan will be treated as if auto insurance coverage had been continuous during their overseas deployment.

"We don't think that returning military [personnel] should be penalized upon returning from serving overseas, therefore we have chosen to relax our prior insurance requirement and extend the Good Hands to our soldiers returning from Iraq and Afghanistan," said Tom Wilson, president of Allstate, in a statement.

Military personnel who were insured with Allstate prior to their deployment in Iraq or Afghanistan will have their policies reinstated to the date of deployment without any lapse in coverage, the company said.

The policy change also applies to new customers, allowing servicemen and women that were not previously insured by Allstate to obtain coverage with the company provided that they had no need for liability insurance while deployed and they actively seek liability insurance coverage within 30 days of their return to the U.S., the carrier said.

The company added that its policy changes apply to servicemen and women whose auto insurance has expired solely due to their military deployment overseas in the war. The policy does not apply to any other service personnel or situations.

Allstate is in the process of implementing the new policy among the various states, said a spokeswoman, and making the necessary changes to its systems.

Leonard Brevik, executive vice president for the National Association of Professional Insurance Agents, noted that 10 states have requested insurers to make changes in their underwriting so service personnel are not punished for lapses in coverage, and he hoped others would join in soon and call for the same changes.

"What Allstate has done is exactly the right thing to do," said Mr. Brevik. "These soldiers have done the most they can do for us and their country. This is the least we can do for them."