Archive for January, 2012

Allstate Requests Rate Hike on Louisiana Homeowners Policies

January 25th, 2012 by | Comments Off | Filed in homeowners insurance, hurricane insurance, rate watch

Allstate Corp., the second-largest home insurer in Louisiana, has asked for an insurance rate increase for 144,000 homeowners who get their coverage from two of the corporations local subsidiaries.

According to the Louisiana state insurance department, Allstate wants an average increase of 5.9 percent for 73,000 homeowners with policies from Allstate Indemnity Co, and an 11.3 percent rate increase for 71,000 homeowners with coverage from Allstate Insurance Co. Added together, these rate hikes represent $17 million.

If Jim Donelon, the Louisiana Insurance Commissioner, approves the rate increases, they would go into effect with new and renewal policies effective March 1st.

Allison Hatcher, speaking on behalf of Allstate, explained that this rate increase is meant to cover the corporations cost of reinsurance, which is basically the coverage that Allstate takes from other companies in order to help cover damages caused by catastrophic events like hurricanes and floods. Such reinsurance charges are usually built into homeowner’s policy premiums, and are generally higher for homeowners in coastal areas.

Allstate’s last rate increase in Louisiana was in August, 2010, when the higher rates ranged from 2.9 percent to 11.6 percent depending on the specific Allstate branch writing the coverage.

State Farm, the state’s largest insurer of private homes, has already asked for and received a rate hike of it’s own this year.

Commissioner Donelon has 30-45 days to consider Allstate’s request before making his decision.

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No Health Insurance Exchange in SoDak this Year

January 19th, 2012 by | Comments Off | Filed in health care reform, health insurance

South Dakota governor Dennis Daugaard has stated that legislation to establish a health insurance exchange will not be on the table in this year’s session.

In a news release, the governor said that conditions were too unstable to recommend creating the kind of exchange stipulated by President Obama’s health care overhaul. That law intended individual states to set up their own exchanges, meant to assist people who purchase personal insurance plans.

But Governor Daugaard feels that the U.S. Supreme Court might strike down the health care reform law, or that it might be repealed by Congress, though he’s hoping for the former outcome. Despite this, he said, his state will apply for a federal grant to help create such an exchange if South Dakota is eventually required to do so.

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Alabama Still Tallying Insurance Claims from April 2011 Tornado

January 13th, 2012 by | Comments Off | Filed in insurance news, insurance specialists, tornado insurance

The Birmingham News, reported recently that insurers have paid out at least $2.2 billion in claims from a tornado that struck last April 27th, and said there are still over 2,500 claims pending.

Those numbers are from the Alabama Department of Insurance, and include amounts that state-regulated insurance companies have paid for damage to businesses, cars, homes, and other property, but does not include any claims that were paid by insurers such as Lloyd’s of London that have policies in Alabama but are not subject to state regulation.

State authorities say that if every claim was resolved and tallied, the total would probably be near $3 billion, which, according to State Insurance Commissioner Jim Riding, falls within estimates his department has seen.