Two judges have ruled that Allstate charges excessive rates for homeowners insurance and should reduce them. State insurance regulators want the company to reduce its homeowners rates by ten percent and refund its customers for rates dating to December 30th, 2004.
Allstate has 800-thousand customers in Texas. It says will file objections to the judges' decision. The company maintains that its rates are reasonable and appropriate for the risk in Texas, The Dallas Morning News reports.
Administrative law Judges Craig Bennett and Tommy Broyles made
their preliminary findings after examining the company's premiums,
claims and profits. Their final ruling will set a specific rate decrease.
The judges' decision will be reviewed by Insurance Commissioner
Mike Geeslin. A department spokesman says the commissioner typically accepts the findings of administrative law judges in rate cases.
State regulators also want Allstate to pay interest of 11-point-two-five percent until it pays the refunds.