Allstate

Allstate Corp. and other insurers could be forced to write homeowner policies throughout Maryland, including coastal areas where some companies have pulled out, under legislation being drafted in the General Assembly. Del. David D. Rudolph, vice chairman of the House Economic Matters Committee, said yesterday that he plans to introduce the bill but that specific language has yet to be worked out. Rudolph said he is responding in part to Allstate's announcement in December that it would stop writing new homeowner policies in the state's coastal areas.

Allstate Insurance Co. filed a $9 million lawsuit yesterday against 10 medical practices, doctors and individuals in Maryland and Washington, D.C., accusing them of defrauding the company for nearly three years.The lawsuit alleges that the doctors and clinics billed for services that were never rendered and for more expensive services than were administered. The defendants also misrepresented treatments in their medical records, and billed for unnecessary services, said Joe McCormick, an Allstate spokesman.

CHICAGO -- The Good Hands People are battling in court again, this time defending their right to send materials such as a flier called "Do I Need An Attorney?" to non-Allstate customers who have been injured by Allstate policyholders.Northbrook, Ill.-based Allstate Corp., which has been sending the information since 1995, says it is required by law to settle claims quickly and fairly, and that it is within its rights to let claimants know that they do not need a lawyer to handle a claim.Two state attorneys general see it differently, as do five people who took Allstate's advice and later felt cheated by the amounts they received.

Construction crews may soon begin rebuilding a Crofton home that burned three months ago, days after a Glen Burnie couple purchased it.Alex and Janet Yeung had leased back their new home on Chelmsford Drive to Ryland, the builder, for use as a model and sales office when the fire destroyed it July 10.The couple has been paying two mortgages, for their old home and the newer, destroyed house, while waiting for insurance companies to straighten out the competing...

Nearly three months after Alex and Janet Yeung lost their new Crofton home in a fire, they are trapped in a morass of competing insurance claims and paying $1,800 a month for a house they can't live in.Only a platform for the garage and the walls of the basement remain of the house that burned to the ground July 10."Right now, only the mailbox belong to us," said Alex Yeung from the couple's sushi bar and restaurant on Route 3.The Yeungs bought the fully decorated, $290,000 home on Chelmsford Drive June 30 and leased it back to Ryland Homes, the builder, for use as a model and sales office until they could sell their home in Glen Burnie.

Police logDorsey's Search: 4700 block of Dorsey Hall Drive: Someone entered an Allstate Insurance Co. office, pried open desk drawers and stole cash. No sign of forced entry was visible.Pub Date: 9/16/96

EVERYONE EXPECTS insurance companies to be risk experts. Setting an insurance premium is, indeed, the actuarial science of probabilities: The probability that a policy-holder will experience health problems, that a driver will get into an accident with the family car or that a home or its possessions will be damaged.So it is noteworthy, indeed, when Allstate Insurance Co., the state's No. 2 insurer, acknowledges that it may have set premiums so low for Maryland homeowners in the past that it must impose unusually large increases this year.

An estimated 125,000 to 150,000 Maryland homeowners are being hit with unusually large increases in their home-insurance premiums by Allstate Insurance Co. -- led by a 44 percent average rate rise in Howard County and a 40.5 percent rise in parts of Baltimore.The Allstate premium increases -- which went into effect in July for new policies and will go into effect Sept. 17 for renewals -- average about 17 percent statewide but vary widely by jurisdiction and even by areas within Baltimore, according to Allstate and state insurance officials.

NEW YORK -- Can your personal credit history predict how well you'll drive a car? Or how carefully you'll take care of your house? A growing number of insurance companies think the answer is yes.Before they'll approve you for homeowners or auto coverage, or decide how much to charge, they'll pull your latest credit report. If they think that you're not financially stable, you might be rejected for coverage or pushed into a high-risk pool -- even if you've never had an auto accident or made a claim on your homeowners insurance.

*TC James J. Stankovic, the former head of the Owings Mills menswear maker J. Schoeneman Inc., will now try his hand at tuxedos as the new president and chief executive officer of After Six Ltd.Mr. Stankovic, 52, replaces Saul B. Offit, who was one of the principals who bought the name of the Philadelphia-based company in 1993 and established its headquarters in the Golden Ring area of Baltimore County.Along with Mr. Stankovic's appointment, the company said it was undergoing a $16 million financial restructuring to handle its growing business.

ED REIMERS, 96 Allstate commercial actor Ed Reimers, the actor who told television viewers, "You're in good hands with Allstate" for decades, died Sunday in upstate New York. The cause of death wasn't immediately clear. Mr. Reimers was best known for delivering the Allstate Corp.'s famous slogan. He was the insurance giant's TV spokesman for 22 years, starting in 1957, according to the Northbrook, Ill.-based company's Web site. Meanwhile, Mr. Reimers was an announcer for programs including the popular Western "Maverick" and the game show "Do You Trust Your Wife?"

Maryland regulators cleared Allstate Corp. yesterday of wrongdoing in its decision to stop writing new homeowner policies in certain coastal areas, a move that had been criticized by consumer advocates and state legislators. The regulatory decision comes as the General Assembly takes up legislation intended to protect consumers and ensure the affordability and availability of homeowner's insurance in coastal areas that are most vulnerable to hurricanes. Insurance Commissioner Ralph S. Tyler is working with legislators to craft the bill based on a task force report that's expected to be released in coming days.

The Maryland Insurance Administration fined Allstate Corp. and its affiliates $750,000 - the largest penalty ever from the regulatory agency - for failing to give tens of thousands of consumers proper notice about their policies, not making required filings with the state, and miscalculating some premiums. Regulators, in announcing the penalty yesterday, said the company has exhibited a pattern of violating state laws regarding consumer notifications. The violations involved the company and its affiliates under the Encompass brand.

A Maryland Senate committee voted down a bill yesterday that would have required Allstate Corp. and other insurers to write homeowner policies in coastal areas that some companies have deemed too risky. Several legislators expressed dismay after Allstate announced last year that it would stop writing new homeowner policies in all or part of 11 counties, noting warnings by scientists that a warmer Atlantic Ocean will lead to more intense hurricanes hitting the Northeast. Legislators held hearings in which they called insurance executives to testify, and bills were filed in both chambers.

Allstate Corp. has postponed its decision to no longer write new homeowner policies in certain coastal areas it deems too risky. Company officials said yesterday that they are working to satisfy inquiries from Maryland regulators, who have asked for detailed financial data and information on hurricane forecasting models. The insurer decided last year to stop offering new property insurance policies in all or part of 11 Maryland counties on the Atlantic Ocean and along the Chesapeake Bay and its tributaries, while continuing to renew policies.

Allstate Corp. and other insurers could be forced to write homeowner policies throughout Maryland, including coastal areas where some companies have pulled out, under legislation being drafted in the General Assembly. Del. David D. Rudolph, vice chairman of the House Economic Matters Committee, said yesterday that he plans to introduce the bill but that specific language has yet to be worked out. Rudolph said he is responding in part to Allstate's announcement in December that it would stop writing new homeowner policies in the state's coastal areas.

Allstate Corp. officials might be called to Annapolis to answer questions from state lawmakers worried about the insurance company's decision last month to stop writing new homeowner policies in Maryland's coastal areas. "My concern is that when we have an industry leader make such a huge policy change, others in the industry tend to follow," said Del. Dereck E. Davis, chairman of the House Economic Matters Committee, "and I would like to address the issue now before it becomes a crisis situation.

Allstate Corp., one of Maryland's largest insurers, will stop writing homeowners' policies in coastal areas of the state, citing warnings by scientists that a warmer Atlantic Ocean will lead to more strong hurricanes hitting the Northeast. The company will no longer offer new property insurance beginning in February in all or part of 11 counties mostly along the Chesapeake Bay and its tributaries. Existing customers won't be affected; a spokeswoman said Allstate intends to renew those policies even in coastal areas.

When couples save for retirement, conventional wisdom says they get more for their investing buck by working as a team. That can mean picking the best investments from two different retirement plans so that the overall nest egg is properly allocated among various asset classes, or coordinating insurance-buying decisions to take advantage of breaks for couples. It also often means compromising on decisions about risk tolerance, portfolio withdrawal rates and when to begin collecting Social Security payments.

The Maryland Insurance Administration ordered Allstate Insurance Co. yesterday to pay refunds averaging $850 to more than 20,000 drivers in the state who were improperly notified by the insurer to pay higher premiums after they caused an accident or received a speeding ticket. Allstate owes the money - $17.5 million and a $100,000 fine - because it failed to use specific language required by Maryland law when it sent letters to customers outlining the higher rates. State officials characterized the refund as one of the largest in Maryland's recent history, and the fine is just shy of the $125,000 that the agency is legally allowed to impose.