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Insurance Companies Penalized for Covid Violations

Civil penalties have been levied against two insurance companies in the state for violating Covid-19 emergency orders.  The penalties have been issued by the Oregon Department of Consumer and Business Services against Allstate Insurance and Root Insurance.  The department says the companies either cancelled or failed to renew insurance policies held by residents of Oregon while the emergency orders tied to the pandemic were in effect in the state.  Those orders were intended to provide some financial relief and peace of mind to residents who were facing financial hardship and potential ruin when the pandemic hit by providing grace periods for premium payments and assurances that policies wouldn’t be cancelled or renewals not granted.  The department says 84 Allstate customers and 100 Root insurance customers were impacted by policy cancellations or rejected renewals between March 25th and September 20th of this year.  Both companies have since taken steps to reinstate the customers that were impacted.

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