The Texas Department of Insurance has ordered Allstate to reduce its homeowners insurance rates to Texas homeowners by 5 percent. The order has been affirmed by the Travis County District Court.
The litigation began after an analysis by the Department of Insurance revealed that the rates were excessive. Under the order, Allstate will be required to refund its customers an estimated $56 million.
The Texas Department of Insurance launched another review of homeowners insurance rates early in March after a review of current rates showed that the insurers had another year of solid profits. A study by the Department of Insurance showed that home insurers in Texas had an average loss ratio of 34 percent in 2006, meaning insurers paid out only 34 percent of the premiums they took in to cover property losses.
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