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Allstate to Refund $17 Million: Md. Also Fines Insurer; Letters on Rates Failed to Comply With Law

The Baltimore Sun, Maryland Car Insurance Expired
Published by CarInsurance.com News 8:00 AM Oct-20-2006

Oct. 20--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.....

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