Oklahoma Attorney Gentner Drummond filed a lawsuit against Allstate Insurance Company on Tuesday.
The suit alleges that the insurer engaged in a coordinated scheme to wrongfully deny, or underpay, legitimate wind and hail damage claims submitted by Oklahoma homeowners.
Drummond accuses the company of implementing an internal program called the “Disaster Payment Minimization Scheme.”
“This lawsuit is about protecting Oklahoma homeowners and holding insurance companies accountable when they fail to honor the promises they make to policyholders,” Drummond said. “Consumers pay their premiums expecting their insurance company to be there when disaster strikes. When insurers put profits ahead of policyholders, it’s hardworking families and individuals who ultimately pay the price.”
The State alleges Allstate systematically altered its claims process by limiting the authority of field adjusters, relying on third-party inspectors and reviewers, and applying restrictive internal standards that were not disclosed to policyholders.
