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Thousands of documents requested from Allstate by a select Senate Committee are just beginning to arrive. During four days of grilling insurance executives last month, lawmakers found that companies were using loss prediction models not sanctioned by the state. It also discovered the state has few teeth if insurance companies ignore state requests for information. Jeff Atwater, who chairs the select committee says legislation to fix the problems they discovered is on the way.

“I think you’ll see that those are things like getting into what the profit factor is clearly more defined, clearly what would be defined as to what kind of model someone should be able to use, also clarifying what the office of insurance regulation has the power to do when someone ignores a subpoena or ignores sending documents. Those are the kind of places we’re at now.” says Atwater.

The state also found that many companies could hide profits by including some add on fees to policies that were not calculated as part of their profit margin.