Allstate Will Pay $17.5M Over Invalid Premium Hikes

Law360, New York (October 20, 2006, 12:00 AM EDT) -- An insurance regulator in the state of Maryland issued a $17.5 million fine against Allstate Corp. after the property and casualty insurer was found to have raised premiums for policyholders without justification.

The fine, which state officials characterized on of the largest in Maryland’s history, will be returned to more than 20,500 Allstate auto policyholders in the state, at an average of $850 per person.

In addition to the stiff restitution penalty, Allstate agreed to pay a $100,000 administrative fine, just shy of the $125,000 maximum...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.