Farmers, Allstate must give guidelines on policies to state

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http://www.chron.com/cs/CDA/story.hts/business/1504493

July 22, 2002, 10:29PM

Farmers, Allstate must give guidelines on policies to state

By BILL HENSEL JR.

Copyright 2002 Houston Chronicle

Farmers Insurance Co. and Allstate Corp. must submit underwriting guidelines

to the Texas Department of Insurance by Thursday to answer subpoenas issued

by the department.

The investigation stemmed from a procedure enacted by Farmers last week that

it would not issue new homeowners coverage if there had been a water or mold

claim made on the house during the past three years.

The insurance company also had said it would not cover homes older than 30

years unless the plumbing had been renovated with copper pipes.

Farmers late Friday changed both of those restrictions after Insurance

Commissioner Montemayor threatened to subpoena that company and others

to obtain underwriting guidelines. Subpoenas were issued to both Farmers and

Allstate.