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Allstate settles claim of 28.5 percent overcharge by agreeing to rate cut

Critics roundly criticized California's Insurance Commissioner for the deal he made privately with Allstate Insurance Company on July 31.  In 2007, Steve Poizner had promised aggressive action against Allstate to punish it for overcharging Homeowners for coverage.  In an unannounced deal the Republican Commissioner made with Allstate Corp. last month, the insurer agreed to cut rates by almost one-third, but was not required to issue refunds for previous years.

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