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Allstate ordered to reinstate policyholders in post-Katrina settlement.

Publication: Trial
Publication Date: 01-MAY-07
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Louisiana Insurance Commissioner Jim Donelon has reached a settlement with Allstate Insurance Co. after ordering the company to reinstate nearly 5,000 homeowners he said it had improperly dropped for "abandoning" their Katrina-wrecked homes. An investigation by the state commission found that Allstate used questionable investigation tactics to determine that homes were abandoned when, in reality, the owners still lived on the damaged properties and were trying to fix them.

The Allstate cancellations came on the heels of an emergency rule that Donelon issued during hurricanes Rita and Katrina--Emergency Rule 23--that prohibited insurance...

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