Allstate Agrees to Cut Calif. Insurance Rates

CHICAGO --- After months of fighting with California insurance regulators, Allstate Corp. has relented and agreed to follow state orders to cut its rates in the state by 15.9 percent by May 12.

The state originally ordered Allstate to cut prices back in February, after concluding the company's rates were excessive. But Allstate challenged the order and asked for a stay. The stay was denied.

In a released statement, California Insurance Commissioner Steve Poizner said the state would have a "zero tolerance policy towards further delays by Allstate in implementing a 15.9 percent reduction in auto insurance rates."