Released February 20, 2008

Commissioner of Insurance Jim Donelon announced a resolution today between the Louisiana Department of Insurance (LDOI) and four Allstate companies over insurance disputes, which includes the opportunity for hundreds of property insurance policyholders to be reinstated and a $250,000 company fine. Donelon says he signed the Consent Agreement and Stipulation yesterday between the LDOI and Allstate Insurance Company, Allstate Indemnity Company, Encompass Insurance Company and Encompass Indemnity Company.

As part of the resolution, Allstate will pay a $250,000 fine for a 2006 property inspection program that resulted in the cancellation of more than 4,700 homeowners insurance policies in Jefferson, Orleans, St. Bernard and Plaquemines Parishes. Of the 588 policyholders who filed written complaints with the LDOI, several hundred were reinstated by Allstate.

Commissioner Donelon says the other disputes involve the cancellation of wind and hail coverage on policies moved from Allstate Insurance to Allstate Indemnity, and from Encompass Insurance to Encompass Indemnity. The several hundred Homeowners whose policies were in effect for three or more years with Allstate Insurance and Allstate Indemnity combined, or with Encompass Insurance and Encompass Indemnity combined will be offered the opportunity to have their policies reinstated with full wind and hail coverage.

The Allstate and Encompass companies will notify their agents about the reinstatement process. Commissioner Donelon says impacted policyholders should contact their insurance agent as soon as possible for reinstatement.