Oklahoma Attorney General Gentner Drummond has filed a lawsuit against Allstate Insurance Company, alleging the insurer wrongfully denied or underpaid wind and hail damage claims submitted by Oklahoma homeowners.
The lawsuit, filed in Cleveland County District Court, alleges Allstate used an internal program designed to reduce claim payments while increasing company profits. According to the petition, the company advertised replacement-cost coverage for storm damage but used undisclosed claims-handling practices that limited coverage and reduced payments to policyholders.
“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.
The lawsuit alleges Allstate limited the authority of field adjusters, relied on third-party inspectors and reviewers, and applied internal standards that were not disclosed to policyholders, resulting in the denial or underpayment of valid storm damage claims.
The state alleges violations of the Oklahoma Consumer Protection Act, the Oklahoma Racketeer-Influenced and Corrupt Organizations Act, civil conspiracy and unjust enrichment.
The lawsuit seeks injunctive relief, civil penalties, restitution for affected consumers and the return of profits the state alleges were improperly obtained.
Earlier, Drummond filed a similar lawsuit against State Farm after the Oklahoma Supreme Court ruled the state could not take over an existing civil lawsuit against the insurance company.
