Allstate asks judge to uphold rate hike

HOUSTON, Oct. 3 (UPI) -- Insurer Allstate Corp. has asked a judge to permanently bar Texas regulators from rolling back a recent homeowners' insurance rate increase.

The largest publicly held personal lines U.S. insurer began charging 5.9 percent higher rates in Texas in August -- and 8 percent higher rates for Texas homeowners in some coastal and near-coastal counties, the Houston Chronicle reported.

The rates remain in effect pending a decision by state District Judge Margaret Cooper, who has not said when she will rule, the newspaper said.

Allstate filed for the increase Aug. 20 -- and state Insurance Commissioner Mike Geeslin immediately issued an order halting it, calling it excessive.

A few days later, Allstate won a temporary restraining order from a county judge on the grounds state law required Geeslin to give Allstate 20 days' notice before blocking or lowering a rate that was already in effect, the Chronicle said.

The state later argued Geeslin had acted within the law and asked Cooper to dismiss Allstate's challenge.

Allstate said it needed the rate increase to pay catastrophic claims.

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