The Office of Insurance Regulation is expected to announce a settlement with Allstate by their ongoing dispute that Allstate floped to give records to OIR.

This is the dispute that landed in state court earlier that year, after Commissioner Kevin McCarty temporarily suspended Allstate’s license to write any new policies. The settlement will prevent Allstate from having to go before the Division of Administrative hearings in September.

Allstate will have to pay $5 million in fines and agree to write 100,000 new homeowners policies by the

next three years. They’ll additionally have to agree to a rate reduction of 5.6 percent on each policy.

Also, Allstate’s corporate office must cancel a $175 million surplus note it issued to the Florida Allstate companies, meaning the Florida company won’t be in debt to the mothership.

The $5 million fine will be paid to the Insurance Regulatory Trust Fund within 30 days by the Allstate corporate office in Northbrook, Ill., not by the Florida companies.

Original post by Jennifer Liberto