Archives: Allstate

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Allstate Voids Policy and is Awarded Damages Due to Policyholder Misrepresentations

On November 22, 2016, Judge Berle M. Schiller from the District Court for the Eastern District of Pennsylvania issued his Opinion and Order in Payne v. Allstate Insurance Company, granting summary judgment to Allstate and awarding them $25,000 in damages, after finding that the Plaintiff made material misrepresentations while securing the homeowners policy.… Continue Reading

Lawyer Sued For Filing Claims on Behalf of Policyholders He Does Not Represent

I suppose if business is really bad for some lawyers, they could just fantasize about representing people and seeking justice. If the pleadings filed by Allstate are true, one Texas lawyer went beyond fantasy and literally filed insurance claims and threatened lawsuits on behalf of policyholders he never represented. The story was reported by Texas … Continue Reading

Alleged Improper Conduct Might Not Be Bad Faith

Many bad faith cases against insurance companies allege improper or inappropriate behavior toward an insured. Sometimes, this conduct rises to the level of bad faith, and other times it does not. This week, I write about a case where a court agreed that the carrier breached the contract, but not in bad faith.… Continue Reading

No Push Back from Texas Department of Insurance on Allstate Rate Increases Despite Allstate $750 Million Operating Income in Fourth Quarter of 2011

As expected, the Texas Department of Insurance – the government regulator in charge of overseeing the insurance industry (also known as “protecting the public”) – has approved Allstate Texas Lloyd’s request to raise rates across Texas by 5.7%. The Texas Department of Insurance has the ability to deny any requested rate hike if it determines … Continue Reading

Double Recovery and Actual Cash Value Analyzed in Katrina Wind Flood Scenario

Policyholders with flood and all risk policies usually do not have as many problems collecting benefits following a hurricane where wind and flood damaged a structure. Those with only one policy are not so fortunate. When the combination of payments from both policies is less than the cost to repair or when delays in payments … Continue Reading

The Media and Insurance Claims

Does getting the local media involved help a client? One of the questions I hear most often from policyholders is, “why is the insurance company handling my claim in an inadequate fashion?” Often, the policyholders are confident that if they could just explain the situation and get someone’s attention at the insurer’s main office, their … Continue Reading

Catching Up on Insurance Coverage Posts and Florida Insurance Politics

This Property Insurance Coverage Blog set record visits last month. Thank you! I noticed a significant drop as the Easter weekend started. The Florida legislature took a well deserved breather last week as well. So, it seems like it is a good time to get caught back up.… Continue Reading

Happy New Year!!

Insurance advertisements have never been more entertaining. While perusing the net for information regarding Safeco and Liberty Mutual, I came across a number of insurance company television advertisements. We often use ad firms to find and pull the ads of some of our opponent insurers. It can be done cheaply through YouTube.… Continue Reading

Allstate Loses Claims Core Process Redesign Trial

Allstate Insurance Company lost a bench trial involving the claims practices employed in its Claims Core Process Redesign program first implemented in the 1990’s. The findings by the trial court are significant because the Court indicated that those claims practices violate standards which are routinely violative of unfair trade and claims practices in most of … Continue Reading

Safeco and Liberty Mutual Claims Practices Questioned on a National Basis: Policyholders Organize Against Wrongful Claims Practices

Suppose you knew that your insurance company had started a new claims practice program called “Quantum Leap” to increase corporate practices by making certain no claim was overpaid—would you buy that insurance? Would you feel peace of mine if you knew that secret program was in place and had such a claims philosophy?… Continue Reading

Is Property Insurance Propaganda and its Impact on Public Policy Similar to What the Health Insurance Industry Does?

I was thinking about the question of property insurance trade associations and lobbying while reading today’s St. Petersburg Times article, At what Cost Care? The article was a question and answer discussion with Wendell Potter, who was a public relations executive for two major health insurers. Potter has given an inside view into the political and … Continue Reading

The Obligation of Good Faith Claims Handling and Policyholders’ Perceptions of Why it Does Not Happen

"How did you come up with that amount for my (or my client’s) claim?" I was thinking of that question while taking the deposition of an Allstate corporate representative in an Indiana claims practice case, and how an insurance adjuster should honestly answer it. It is the same question millions of other policyholders, public adjusters, and … Continue Reading

Property Insurers Have An Obligation To Investigate All Facts Supporting Coverage

An attorney from another law firm asked me whether an insurer is obligated to investigate facts supporting coverage in a property insurance coverage dispute. It is common for colleagues to share information and help when they can. It seems that the more one shares, the more one receives –usually with compound interest.… Continue Reading

The Dirty Secret of Exclusions Some Major Insurance Companies Like State Farm, Allstate, Nationwide and even USAA, Do Not Want You to Think About

Why are major insurance companies selling insurance with "feel good" messages rather than explaining how many different types of accidents and catastrophes they will not cover? If they were honest, wouldn’t they explain to customers what is not covered before the purchase? Sandy Burnette wrote a comment to "Is the State Farm Policy Really Worth Anything?" As … Continue Reading

David Berardinelli’s Fight Against Allstate’s Claims Culture

David Berardinelli made a presentation at NAPIA‘s Convention on Friday. His topic, "From ‘Good Hands’ to Boxing Gloves: How Allstate Changed Casualty Insurance in America," was an excellent and updated version of a speech I have seen before. Many of his points are important to understanding why the claims culture has changed so much over … Continue Reading

Claims Magazine and the CPCU Designation are Worthy Educational Investments for Claims Professionals

Motivated claims adjusters need to study, improve, and be noticed for their skills and dedication. The May edition of Claims Magazine featured two stories I found interesting for different reasons. One article every adjuster should read is "Designation Envy-Why CPCU Should Matter to You." The other article, "Emerging Transformed-New Challenges Create Opportunities for Independents," should be … Continue Reading

Is Allstate Misleading the Public About the Need for Federal Regulation?

Recently, Allstate has accused other insurers of investing in credit default swaps. Does Allstate have knowledge of insurers engaging in this illegal activity? Or are these allegations a facade for the new federal oversight that would place Allstate under control of the federal government. My view on this topic is pointed: Allstate and other major … Continue Reading
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