Allstate is asking the Louisiana Department of Insurance for a hearing on the department's order to reinstate coverage for 4,700 policyholders with hurricane-damaged homes.
The Northbrook, Ill.-based insurer issued a statement this afternoon announcing it has filed a petition requesting a hearing and a stay of the order issued by the department.
"We submitted this petition in response to the March 6 LDOI order," the company said. "Allstate believes that by taking this step we are working to avoid customer confusion resulting from the March 6 order. Today's petition also allows us to continue operating our business."
The company said it is proud of the work it has done to assist in the rebuilding of Louisiana and that insurance department market conduct exams have concluded the company has handled claims "in compliance with state statutes, rules and regulations."
"We continue to work with the department to reach a mutually acceptable solution for Louisiana consumers," the company said. "Allstate remains committed to continuing to work in an open and forthright manner with [Insurance] Commissioner [Jim] Donelon and his staff."
Earlier this week Commissioner Donelon ordered Allstate to reinstate 4,772 customers the company cancelled after an inspection of more than 40,000 damaged homes.
The insurer said it sent letters to the homeowners requesting proof of repair or habitation. Customers who failed to respond to the notices requesting proof were cancelled, Allstate said.
Mr. Donelon sent inspectors to 18 homes to review Allstate's inspection procedures. He called the inspection process into question and ordered that the policies be reinstated this week.
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