Dover – Insurance Commissioner Karen Weldin Stewart announced today that the Allstate Insurance Company will be providing refunds or credits totaling $428,355 to 2,445 policyholders who had not received discounts on their automobile insurance premiums to which they were lawfully entitled.

All of the affected policyholders had successfully completed Department of Insurance-certified defensive driving courses.  Delaware law provides that drivers who complete a certified course shall receive a 10% discount off the Personal Injury Protection (“PIP”) and liability components of their automobile insurance premiums.  Drivers who complete a refresher course within the statutory time frame receive a 15% discount off their premiums.

After receiving consumer complaints, Commissioner Stewart requested Allstate perform a comprehensive audit to determine which policyholders were due refunds or credits and the extent of the credits or refunds to which they were entitled.  The company completed the audit in late January and letters were sent to all of the affected policyholders informing them of the credit or refund they would be receiving.  Commissioner Stewart acknowledged the role of the Department’s staff in promptly investigating the issue.  “Our Consumer Services Division quickly and correctly realized that a small number of consumer complaints suggested a greater problem.  Their swift response was integral in achieving this outcome.”

Commissioner Stewart further stated that Allstate’s full cooperation in conducting the audit was greatly appreciated.  “It gratifies me that Allstate quickly recognized a problem existed and took the appropriate steps to rectify the situation.”

“The defensive driving program is very important to me and to the Department,” said Commissioner Stewart.  “Drivers completing a DOI-certified program come away with a heightened awareness of the rules of the road and the skills they learn help keep them, and all of us, safe.  The premium discount is a strong incentive for drivers to take a course, particularly in these tough economic times, and it is my responsibility to ensure that they receive it.”

The Delaware Department of Insurance (“DOI”) consists of five divisions: (1) the Bureau of Examination, Rehabilitation & Guaranty: (2) the Consumer Services & Investigations Division; (3) the Producer Licensing & Continuing Education Division; (4) the Fraud Prevention Bureau; and (5) the Bureau of Captive and Financial Insurance Products.  The DOI is tasked with ensuring reliable insurance coverage at reasonable rates for Delaware consumers while ensuring their claims are paid in full and in a timely manner.  The DOI is an entirely self-funded agency with a yearly contribution to the Delaware General Fund that is approximately five times the amount of its annual operating budget.

 

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Contacts:
Elliott Jacobson (302) 674-7303; (202) 294-3266 cell
Michael Gould (302) 674-7304