Allstate, Encompass Fined for Violating Delaware Auto Law
Delaware Insurance Commissioner Karen Weldin Stewart has fined Allstate Insurance Co. and its subsidiary Encompass Insurance Co. a total of $50,000 for violations of Delaware insurance law.
The Allstate consent order asserts that the company failed to provide defensive driving discounts to qualifying policyholders. The Encompass consent order asserts the company imposed an accident surcharge on policyholders involved in accidents even though they were not the party at fault. In all, 3,645 Delaware policyholders were impacted.
The insurers cited computer errors as the cause of the violations and have said the problems have been fixed.
Stewart said she believes both companies did a good job of notifying and refunding all monies owed to policyholders. The refunds totaled $848,355.
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