by Bill Hensel Jr., Houston Chronicle
July 22, 2002, 10:29PM
Farmers Insurance Co. and Allstate Corp. must submit underwriting guidelines to the Texas Department of Insurance by Thursday to answer subpoenas issued by the department.
The investigation stemmed from a procedure enacted by Farmers last week that it would not issue new homeowners coverage if there had been a water or mold claim made on the house during the past three years.
The insurance company also had said it would not cover homes older than 30 years unless the plumbing had been renovated with copper pipes.
Farmers late Friday changed both of those restrictions after Insurance Commissioner Jose Montemayor threatened to subpoena that company and others to obtain underwriting guidelines. Subpoenas were issued to both Farmers and Allstate.