Georgia Insurance and Safety Fire Commissioner John King (R) publicly chastised the Allstate insurance company for drastic insurance price hikes in a statement on Thursday.
“Allstate raised rates by 14 percent earlier this year. Now, it’s trying to fleece working Georgians again with a 25% rate hike next month. Allstate is exploiting a loophole in Georgia law to do this — and it’s the only major provider doing so. The first step is calling them out,” Commissioner King tweeted.
King stated that he is working with the Peach State’s legislature to close the legal loophole that has allowed the Illinois-based insurance company to hike insurance rates.
“The second step is shutting down the loophole. No major provider should be able to game the system and screw over Georgia families with 40 percent rate hikes during a recession. I’m working with Georgia General Assembly leaders to get that done,” King said.
According to the Georgia Budget and Policy Institute (GBPI), some 240,000 Georgia residents do not earn enough income to buy insurance and simultaneously do not qualify for Medicaid.
“There’s clearly a loophole and this is the only company that has used this [loophole]; I mean, most companies we work with understand we are in incredibly economically trying times, and they work with us,” he said in a tweet.
As of 2019, 12.9 percent of Georgians were without insurance, which is the fifth-lowest rate in the U.S.
“We’ve been very successful negotiating with every other company to keep those rate increases at a reasonable level,” King said.
The Allstate insurance company made a public statement in response to King’s call-out.
“Even though inflation and other factors causing auto prices to rise, customers will continue to get competitive prices with Allstate,” the insurance company said in a public response via Twitter.
Since 2013, seven hospitals in rural Georgia have been forced to shut down, and more than half of the remaining rural hospitals are considered “financially vulnerable to closure” by the GBPI.
“With a full-term as Insurance Commissioner, we’ll continue to strengthen consumer services while lowering costs — and we’ll hold the big providers accountable,” the commissioner tweeted on Friday.
King, who is on the ballot for the November 8 general midterm election, was endorsed Friday by the Police Benevolent Association of Georgia.
“As a 30-year lawman myself, it’s humbling to have the full endorsement of the Police Benevolent Association of Georgia!” King said in a tweet. “Our [law enforcement officers] are counting on elected officials to provide them with resources and support to keep communities safe. That’s what I’ve done and it’s what I’ll continue to do.”
King reiterated his commitment to hold the biggest insurance conglomerates accountable to its customers in the Peach State.
Republican nominee for Georgia State House District 82, Jenine Milum, spoke with The Georgia Star News on Saturday.
“John King is obviously looking out for Georgians and not being influenced by major corporations’ pressure. When I’m in office, I will support John’s proposed legislation to remove the loophole Allstate is taking advantage of,” Milum told The Georgia Star News.
“My promise to you is this: I’ll hold the big insurance companies accountable, stop corruption in its tracks, and make government work for you,” King said on Twitter.
“AllState, we see what you’re doing, and we’re going to hold you accountable,” King added.
– – –
Addison Basurto is a reporter at The Georgia Star News and The Star News Network. Follow Addy on Twitter and GETTR. Email tips/inquiries to [email protected]
Photo “John King” by Commissioner John King. Background Photo “Allstate Insurance Agency” by Allstate Insurance Agency.
