Jan 13 (Reuters) - Allstate ( ALL ) has been sued by the

state of Texas, which accused the insurer of unlawfully

collecting consumers' driving data and then using the data to

justify raising insurance rates.

Texas Attorney General Ken Paxton said on Monday that

Allstate ( ALL ), through its Arity data analytics unit, paid mobile app

developers to secretly incorporate its software, and then

collected location data from more than 45 million consumers

nationwide by tracking cellphone movements through the apps.

(Reporting by Jonathan Stempel in New York)