Allstate Insurance Company has agreed to pay a $4 million fine and provide more than $30 million in policy credits and premium returns to customers whom California regulators say were overcharged for home and auto coverage.

California Insurance Commissioner John Garamendi announced the agreement with the company. The Northbrook, Ill.-based insurer admitted no wrongdoing in the matter.

The case involved Allstate's practices from Jan. 1, 2000 to April 12, 2002. During this time, Allstate employed a "Financial Stability" process for rating customers, which in the opinion of Commissioner Garamendi was a form of credit scoring that placed some consumers in programs with higher rates. California does not permit credit scoring for auto insurance.

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