Louisiana Insurance Commissioner Wants Meeting with Allstate CEO

By William Murphy

Published on July 28, 2006

Donelon said he would meet "anytime, anywhere" with Liddy to negotiate an agreement that would be amenable to Allstate yet still provide protection to Louisiana consumers. The Commissioner is also concerned about an alleged threat by Allstate to leave the state if denied the ability to cancel the policies.

Donelon maintains that Allstate is prohibited by a 1992 Louisiana consumer law from changing or canceling a policy that has been in effect for three or more years and has not had more than two "act of God" claims.

Allstate legal representative Lorrie Brouse said that Allstate disputes Donelon's interpretation of the law. Additionally, according to Brouse, Allstate would only cancel coverage for homeowners who do not carry automobile insurance in addition to the wind and hail coverage.

Brouse also disagrees that Allstate unequivocally plans to pull out of Louisiana completely if it does not get its way. According to Brouse, although the matter has come up in discussions with Donelon, Allstate considers it a last resort. Brouse said too that because Allstate plans for the cancellations to take place in January, current policyholders will remain covered in this year's hurricane season.

Donelon has vowed to take the dispute all the way to the state Supreme Court if necessary because he fears that allowing Allstate to circumvent the law will open the door for other companies to follow suit.

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