LOS ANGELES- LAWFUEL – The Law News Wire – Dan Zohar and his client, the Foundation for Taxpayer and Consumer Rights (FTCR), were recently instrumental in persuading California State Insurance Commissioner Steve Poizner to hold a hearing, anticipated for later this year, in San Francisco, CA. to determine whether Allstate Insurance Company (NYSE: ALL) will be required to refund over $300 million in premiums to more than one million California Allstate policyholders for charging excessive rates on its Homeowners Multiple Peril insurance policies. In September 2007 on a concurrent matter, Zohar and the FTCR will also argue on behalf of consumers, requesting that Allstate slash its rates going forward, which could potentially save California consumers nearly $400 million per year. Dan Zohar is lead counsel for the FTCR and is with the Zohar Law Firm, P.C. in Los Angeles, CA. In the Matter of the Rate Application of Allstate Insurance Company and Allstate Indemnity Company, File No. PA-2006-00006 and In the Matter of the Rates, Rating Plans or Rating Systems of Allstate Insurance Company and Allstate Indemnity Company, File No. PA-2007-00011.
“All major insurance carriers in California have been lowering their homeowner’s policy rates,” stated Dan Zohar, “except for Allstate. Apparently, Allstate’s ‘good hands’ have been in everyone’s wallet and it has been profiting by charging its policyholders excessive rates for disaster insurance. California consumers deserve better and we look forward to presenting a strong case to hold Allstate responsible for violating California law.”
The FTCR and Dan Zohar have teamed together before in representing California consumers against avaricious insurance carriers. Through their efforts, they have compelled carriers to reduce premiums for auto, homeowner’s and medical malpractice lines by seeking hearings under Proposition 103, California’s unique insurance law. The FTCR, the original proponent of Proposition 103, reports to have saved consumers under that legislation over $800 million.
“Prop 103 is an extremely important law that gives consumers a fighting chance against the insurance company monopolies,” explained Zohar. “We look forward to working with Insurance Commissioner Poizner to use Prop 103 to protect California consumers. We can only hope that other states follow California’s lead and pass similar legislation before the Big Insurance interests—the ones who denied relief to Katrina victims and California earthquake victims– can block their efforts.”
Editor’s Note:
Dan Zohar is lead counsel for the FTCR and is with the Zohar Law Firm, P.C. in Los Angeles, CA. (www.zoharlawfirm.com); Tel: 213-689-1300. In 2003, Zohar was lead counsel for the FTCR at the hearings in the first Proposition 103 challenge against a medical malpractice insurer which resulted in a ruling saving thousands of California doctors over $23 million in premiums (In the Matter of the Rate Applications of American Healthcare Indemnity Company and SCPIE Indemnity Company), File No. PA-02025379
Allstate is represented by Neal Wolf with the San Francisco, CA. law firm of Lebeoef Lamb; Tel: 415-951-1100.
