Oklahoma Attorney General Gentner Drummond sued Allstate, alleging the insurer engaged in a plan to wrongfully deny or underpay legitimate wind and hail damage claims submitted by Oklahoma homeowners. The lawsuit contends that Allstate implemented an internal program known as the "Disaster Payment Minimization Scheme" designed to reduce claim payments and increase corporate profits. The state also alleged that 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. Those practices resulted in the denial or underpayment of valid storm-related claims, according to the petition. Allstate did not immediately respond to a request for comment.
The Allstate CorporationOklahoma sued Allstate for allegedly underpaying claims via a 'Disaster Payment Minimization Scheme', which could lead to penalties and reputational harm.