Regulators announce settlement with Allstate

The Office of Insurance Regulation announced a settlement with Allstate on Friday afternoon over its ongoing dispute that Allstate failed to give records to OIR.

Allstate will have to pay $5-million in fines to an insurance trust and agree to write 100,000 new policies over the next three years. They'll also have to agree to a rate reduction of 5.6 percent on each policy.

This is the dispute that landed in state court earlier this year after Commissioner Kevin McCarty suspended Allstate's license to write any new policies, including more lucrative auto policies. The settlement will prevent Allstate from having to go through with a hearing at the Division of Administrative Hearings next month.

--Jennifer Liberto, Times Staff Writer