Allstate Bad Faith Insurance Practices
All insurance companies, including Allstate, owe their customers and certain third parties what is known as the duty of good faith and fair dealing. This means that in investigating, processing, and issuing decisions on insurance claims, Allstate must refrain from acting dishonestly or with the intent to harm.
If you believe that Allstate or any of its subsidiaries has acted in bad faith with respect to an insurance claim you filed, you may be able to bring a bad faith insurance lawsuit against the company. To learn more about which insurance company tactics are generally considered to be bad faith practices, click here. If you have questions about your situation, contact one of our experienced Colorado bad faith insurance lawyers through this online form.
About Allstate Insurance
The Allstate Corporation, which is headquartered in Northfield Township, Illinois, is the third-largest personal lines insurer in the United States. It is the largest publicly-held personal lines insurer. Allstate is a Fortune 500 company that reported more than $33 billion in revenue in 2013. Allstate generates a significant majority of its revenue from its property insurance offerings.
The Allstate Corporation owns and operates the following insurance companies in the United States:
- Allstate Fire and Casualty Insurance Company,
- Allstate Insurance Company,
- Allstate Indemnity Company,
- Allstate Life Insurance Company,
- Allstate Property and Casualty Insurance Company,
- Encompass Insurance Company,
- Allstate New Jersey Insurance Company,
- Allstate New Jersey Property and Casualty Insurance Company,
- Allstate Life Insurance Company of New York,
- Castle Key Insurance Company,
- Castle Key Indemnity Company,
- Allstate County Mutual Insurance Company,
- Allstate Texas Lloyd’s, and
- American Heritage Life Insurance Company.
Allstate offers several different types of insurance, including:
- Auto insurance,
- Motorcycle insurance,
- Sport and recreational vehicle insurance,
- Home insurance,
- Renters insurance,
- Condo insurance,
- Business insurance,
- Life insurance, and
- Supplemental health insurance.
Bad Faith Insurance Practices by Allstate
Allstate has been repeatedly criticized by the media and stakeholders for its bad faith insurance practices. According to a report by the American Association for Justice, Allstate is the worst insurance company in America. The report condemns Allstate for continually putting its profits over policyholders, stating that Allstate uses a combination of “lowball offers and hardball litigation” to boost its bottom line. The report also reveals that former Allstate adjusters claimed they were rewarded for keeping the amount of money paid on claims low, even if they had to lie to their customers. Some former Allstate employees said that the company used a “three Ds” strategy to pad its own pockets – deny, delay, and defend.
According to the National Association of Insurance Commissioners, complaints filed against Allstate are greater in number than those filed against almost all of its major competitors. In Maryland, Allstate received the largest fine in state history for raising premiums and changing policy terms without notifying its customers. In Texas, Allstate agreed to pay more than $70 million in fines after insurance regulators discovered that the company was overcharging homeowners throughout the state. After Hurricane Katrina, Allstate was one of several insurance companies that improperly denied property insurance claims by residents of the Gulf Coast who lost everything to one of this country’s greatest natural disasters.
In Colorado, Allstate has been held liable for its bad faith insurance practices in jurisdictions across the state. Allstate must abide by the Colorado bad faith insurance laws applicable to insurance companies operating in the state, and can be held legally responsible when they do not.
Filing a Bad Faith Insurance Lawsuit against Allstate
If you live in Colorado and are concerned that Allstate or any of its subsidiaries has acted in bad faith with respect to your insurance claim or claims, contact an experienced Colorado bad faith insurance lawyer to discuss your rights.
The skilled Colorado Springs Insurance Bad Faith lawyers at McCormick & Murphy, P.C. have successfully handled dozens of insurance bad faith cases in Colorado courts. To speak with us about your situation, call 1 (888) 668-1182 or submit a question online.
Disclaimer: Information provided on this site is NOT formal legal advice. It is generic legal information. Under no circumstances should the information on this site be relied upon when deciding the proper course of a legal action. Always get a formal case evaluation from a licensed attorney if you think you might have a personal injury lawsuit.