Allstate ads boast “accident forgiveness,” but the Maryland Insurance Agency wasn?t so generous with the $156 billion Fortune 100 company.
The Maryland Insurance Agency Thursday ordered Allstate?s capital region auto insurance entity to reimburse $17.5 million to 20,000 customers the agency said were improperly informed about premium increases.
“We have ordered it. They are going to either issue a credit on their next renewal or issue a refund check,” said agency spokeswoman Darlene Frank. The refund will go directly to consumers.
The alleged improper rate increase notices went out between Jan. 1, 2003, and March 1, 2005, according to the Maryland Insurance Agency news release. “Maryland law requires any notice of premium increase must disclose a description of the accident or violation which is the basis for the premium increase.”
A representative from Allstate could not be reached immediately for comment, but their Web site states, “Your car insurance rates won?t go up just because of an accident. Even if it?s your fault.”
Allstate had until Oct. 3 to audit the affected policyholder records and determine refund amounts, plus interest. Affected policyholders have been notified by Allstate.
The Maryland Insurance Administration educates Maryland consumers about insurance and regulates Maryland?s multibillion dollar insurance industry.
Allstate performance
» Allstate reported revenues down 2.3 percent in the third quarter of 2006.
» Allstate brand standard auto insurance, however rose 2.6 percent.
Source: Allstate quarterly report
