Insurance Companies Breaking the Law: linking auto policies and home insurance

It seems that two companies that serve Long Island have actually broke state law; both companies have used auto insurance as a way to decide if they are to renew a homeowner policy. The two insurance companies are Allstate and Liberty Mutual, and both have been told by superintendent of the Insurance Department, Eric R. Dinallo to stop this practice that Dinallo calls consumer coercion.

Eric has also told other companies if they also drop homeowners if they use other companies to get their insurance to inform the department. The Insurance Department drew up this legal review because so many consumers started to complain about these insurance companies, Liberty Mutual has agreed to do what the state has ordered them to do and they have also said that they will reinstate customers insurance policies that they dropped.

However Allstate believe that their practice is legal and they said that they informed the state over 18 months ago as to what they were doing. Allstate have said that they will meet with the state to discuss this issue further.

Source

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