NU Online News Service, Oct. 3, 10:23 a.m. EST
Allstate Insurance Co. and Allstate subsidiary Encompass Insurance Co. have been fined $50,000 for violating state laws in Delaware.
State Insurance Commissioner Karen Weldin Stewart says Allstate did not give defensive-driving discounts to qualified policyholders and Encompass billed policyholders an accident surcharge when they were not at fault in accidents.
In a statement Stewart says she can fine the companies an additional $100,000 each if the violations continue, but she did commend the auto insurers for refunding more than $848,000 to policyholders.
About 3,645 policyholders were affected by the violations, Stewart says.
"It's my job to protect consumers and to make sure insurers get it right," she says. "They've got to make sure their business processes align with Delaware insurance laws or face the consequences. I believe imposing these fines will help protect our citizens and prevent future, similar errors."
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