Allstate Says It Hasn’t Broken State Rules
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Allstate Insurance Co., facing two consumer lawsuits and sanctions by the California Insurance Department over alleged violations of the state’s premium-setting rules, said that it is complying with all state regulations.
The department said Wednesday that Allstate illegally used consumers’ credit reports to determine auto insurance rates and pushed agents to alter policyholders’ driving mileage in order to boost premium income. Consumer suits over the mileage alterations have been filed in Sacramento and Los Angeles.
An Allstate spokeswoman said that the Illinois-based insurer “is in continuing dialogue” with the department and is “vigorously defending” itself against civil suits.
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