On Tuesday, Attorney General Gentner Drummond filed a lawsuit in Cleveland County against Allstate, Oklahoma’s third-largest writer of homeowners insurance, alleging systematic underpayment of claims of roof damage.
The action comes in the wake of a twin lawsuit against State Farm, filed on June 24, also in Cleveland County, following the Supreme Court’s nuanced rejection of the AG’s intervention in the widely publicized case, Hursh v. State Farm. In ruling against the intervention, the Court more or less suggested that Drummond file a new lawsuit.
The new petition labels an internal Allstate program as the “Disaster Payment Minimization Scheme,” an effort aimed at arbitrarily reducing claims payouts across the state.
As with the AG’s previous actions against State Farm, the new suit claims that Allstate, too, violated laws more typically associated with cartels and the mafia.
The petition alleges violations of the Oklahoma Consumer Protection Act and the Oklahoma Racketeer Influenced and Corrupt Organizations Act, as well as civil conspiracy and unjust enrichment, the AG’s office announced Tuesday.
Allstate did not respond to an interview request.
Like the State Farm petition, the AG’s new lawsuit sets its sights on internal Allstate documents that may prove the alleged scheme.
“The precise internal name, dates of rollout, and written directives are all within Allstate’s exclusive possession, custody, and control,” the petition reads.
The petition sets out to “compel the disgorgement of illicit profits” and “prevent Allstate’s unjust enrichment.”
In the press release, Drummond, who is running for governor, said he was protecting Oklahomans against insurers who failed to uphold promises to policyholders.
“When insurers put profits ahead of policyholders, it’s hardworking families and individuals who ultimately pay the price,” Drummond said.
Oklahoma City attorney Jeff Marr, who has filed lawsuits on behalf of hundreds of policyholders against State Farm and at least 50 against Allstate, said with the storms that battered Cleveland County over the holiday weekend, the timing of the AG’s action couldn’t be more perfect.
Marr said that as State Farm had come to dominate the news, Allstate customers had repeatedly called his office.
“People were saying, ‘What about me?’” Marr said.
The AG’s Allstate play came as no surprise to the seasoned attorney.
“This was expected because the bad faith practices are not limited to just State Farm,” Marr said. “Allstate and its ‘good hands’ are right behind.”
The petition and Drummond’s comments leave open the possibility that the AG’s crusade is not exhausted with the current action.
“I will continue fighting to ensure Oklahomans receive the coverage they paid for and the honest dealings they deserve,” Drummond said.
This article first appeared on Oklahoma Watch and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.