Los Angeles Business Journal
Citing the increased risk from losses such as earthquakes and fires, Allstate will stop selling new homeowners policies and landlord policies for rental units in California beginning July 1.
In turn, the Foundation for Taxpayer and Consumer Rights has suggested that the insurance commissioner bans Allstate from returning fully to selling new homeowners policies in the state for at least 10 years.
But what do you think? This week, we asked in an informal poll: Should Allstate be banned from re-entering the state and selling policies for 10 years?
A majority of respondents, 60 percent, said that Allstate should be banned, because they abandoned the new homeowners policy market and should face some form of punishment for the decision.
Next, 36 percent said that the company shouldn’t be banned, because they made a business decision.
Four percent of respondents said they were not sure.
Among the varied comments left by respondents:
“Allstate has bad business practices for many years. 10 years is light, I would ban them forever.”
“It’s called free enterprise.”
“They are looking at the reality in California. There will be a major earthquake. It’s the ‘when’ that is scaring Allstate. And until they can realize a way to provide reasonable coverage I cannot blame them for backing out of the market.”
“No one should be allowed to sell only what they want when the want in a regulated industry like insurance. There should be a penalty for breaking the public trust.”
“Losing a major insurer is not good for the state. It spreads the risk of a major catastrophe over a lesser group of insurers and puts California homeowners at greater risk. California should try to elect an insurance commissioner who is not using the office as an immediate springboard for a higher office.”
This week, we look at the increasing practice of employers checking on prospective employees’ blogs and profiles on social networking Web sites, such as Santa Monica’s MySpace to gather information.
Should employers check blogs and social networking sites to gather information about job applicants and employees?