The Delaware Insurance Department fined Allstate and Encompass $50,000 for violating state insurance laws, which the insurers blamed on computer problems and programming oversight.
In Allstate’s case, the insurer neglected to provide defensive driving discounts to qualifying policyholders.
With Encompass, the insurer tacked on an accident surcharge on the policies of insureds who were involved in accidents even though they were not the at-fault parties. Approximately 3,645 Delaware policyholders were wrongly charged.
Both Allstate and Encompass paid a combined total of $848,355 in refunds.
