Allstate: Difference between revisions

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===Unfair claims handling practices===

*'''Lowball offers and delays'''

::Accused of systematically offering settlements below market value and intentionally delaying claims to pressure claimants into accepting lower payouts. This strategy was allegedly developed with ''McKinsey & Company'' in the 1990s to maximize profits by reducing payouts.[1~~][2][3]~~

::Accused of systematically offering settlements below market value and intentionally delaying claims to pressure claimants into accepting lower payouts. This strategy was allegedly developed with ''McKinsey & Company'' in the 1990s to maximize profits by reducing payouts.<ref name=":0">{{Cite web |title=Behind McKinsey & Company’s Efforts To Help Allstate Squeeze Personal Injury Victims |url=https://www.injurytriallawyer.com/blog/behind-mckinsey-companys-efforts-to-help-allstate-squeeze-personal-injury-victims/ |website=injurytriallawyer.com}}</ref><ref name=":1">{{Cite web |last=Samples |first=Steve |title=Allstate Worst Insurance Company For Consumers |url=https://tex.law/allstate-worst-insurance-company-for-consumers/ |website=tex.lawe}}</ref>

*'''Alligator approach'''

::Internal documents revealed a tactic of "sitting and waiting" to frustrate claimants into settling for inadequate amounts, particularly in personal injury cases.~~[1]~~

::Internal documents revealed a tactic of "sitting and waiting" to frustrate claimants into settling for inadequate amounts, particularly in personal injury cases.<ref name=":0" />

*'''High denial rates'''

::Florida subsidiaries ''Castle Key Indemnity'' and ''Castle Key Insurance'' denied 47.1% and 46% of claims, respectively, in 2023, some of the highest rates in the state.~~[2]~~

::Florida subsidiaries ''Castle Key Indemnity'' and ''Castle Key Insurance'' denied 47.1% and 46% of claims, respectively, in 2023, some of the highest rates in the state.<ref name=":1" />

===Use of anti-consumer policy language===

:'''Anti-concurrent causation clauses'''

::Pioneered policy language allowing claim denials if a loss involved both covered and excluded events. This was widely criticized after Hurricane Katrina, where homeowners were denied claims for storm damage if flooding also contributed.[2~~][4]~~

::Pioneered policy language allowing claim denials if a loss involved both covered and excluded events. This was widely criticized after Hurricane Katrina, where homeowners were denied claims for storm damage if flooding also contributed.<ref name=":2">{{Cite web |title=Allstate Rebuts Stinging Criticism |url=https://consumerwatchdog.org/uncategorized/allstate-rebuts-stinging-criticism/ |website=consumerwatchdog.org}}</ref>

===Legal and regulatory violations===

*'''Bad-faith lawsuits'''

::Faced multiple lawsuits for denying valid claims, including a $2.8 million bad-faith ruling in Weiss v. Allstate and a $25 million class-action settlement for inflating premiums and unfairly denying claims.~~[3][4][5]~~

::Faced multiple lawsuits for denying valid claims, including a $2.8 million bad-faith ruling in Weiss v. Allstate and a $25 million class-action settlement for inflating premiums and unfairly denying claims.<ref name=":1" /><ref name=":2" />

*'''TCPA violations'''

::A 2024 court ruling found Allstate vicariously liable for illegal robocalls made by subcontractors, violating the Telephone Consumer Protection Act.[6]

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:Negative reviews cite poor customer service, claim delays, and premium hikes without improved coverage.[2][7]

''Allstate'' has disputed some claims, citing third-party reports supporting its practices.[4]

== Products ==

==Products==

{{Placeholder box|This is a list of the company's product lines '''with articles on this wiki'''.

* [[Example product line one]] (release date): Short summary of the product's incidents.

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== See also ==

==See also==

{{Placeholder box|Link to relevant theme articles or companies with similar incidents.}}

[[Category:Allstate]]

@@ Line 25: / Line 25: @@
 ===Unfair claims handling practices===
 *'''Lowball offers and delays'''
-::Accused of systematically offering settlements below market value and intentionally delaying claims to pressure claimants into accepting lower payouts. This strategy was allegedly developed with ''McKinsey & Company'' in the 1990s to maximize profits by reducing payouts.[1][2][3]
+::Accused of systematically offering settlements below market value and intentionally delaying claims to pressure claimants into accepting lower payouts. This strategy was allegedly developed with ''McKinsey & Company'' in the 1990s to maximize profits by reducing payouts.<ref name=":0">{{Cite web |title=Behind McKinsey & Company’s Efforts To Help Allstate Squeeze Personal Injury Victims |url=https://www.injurytriallawyer.com/blog/behind-mckinsey-companys-efforts-to-help-allstate-squeeze-personal-injury-victims/ |website=injurytriallawyer.com}}</ref><ref name=":1">{{Cite web |last=Samples |first=Steve |title=Allstate Worst Insurance Company For Consumers |url=https://tex.law/allstate-worst-insurance-company-for-consumers/ |website=tex.lawe}}</ref>
 *'''Alligator approach'''
-::Internal documents revealed a tactic of "sitting and waiting" to frustrate claimants into settling for inadequate amounts, particularly in personal injury cases.[1]
+::Internal documents revealed a tactic of "sitting and waiting" to frustrate claimants into settling for inadequate amounts, particularly in personal injury cases.<ref name=":0" />
 *'''High denial rates'''
-::Florida subsidiaries ''Castle Key Indemnity'' and ''Castle Key Insurance'' denied 47.1% and 46% of claims, respectively, in 2023, some of the highest rates in the state.[2]
+::Florida subsidiaries ''Castle Key Indemnity'' and ''Castle Key Insurance'' denied 47.1% and 46% of claims, respectively, in 2023, some of the highest rates in the state.<ref name=":1" />
 ===Use of anti-consumer policy language===
 :'''Anti-concurrent causation clauses'''
-::Pioneered policy language allowing claim denials if a loss involved both covered and excluded events. This was widely criticized after Hurricane Katrina, where homeowners were denied claims for storm damage if flooding also contributed.[2][4]
+::Pioneered policy language allowing claim denials if a loss involved both covered and excluded events. This was widely criticized after Hurricane Katrina, where homeowners were denied claims for storm damage if flooding also contributed.<ref name=":2">{{Cite web |title=Allstate Rebuts Stinging Criticism |url=https://consumerwatchdog.org/uncategorized/allstate-rebuts-stinging-criticism/ |website=consumerwatchdog.org}}</ref>
 ===Legal and regulatory violations===
 *'''Bad-faith lawsuits'''
-::Faced multiple lawsuits for denying valid claims, including a $2.8 million bad-faith ruling in Weiss v. Allstate and a $25 million class-action settlement for inflating premiums and unfairly denying claims.[3][4][5]
+::Faced multiple lawsuits for denying valid claims, including a $2.8 million bad-faith ruling in Weiss v. Allstate and a $25 million class-action settlement for inflating premiums and unfairly denying claims.<ref name=":1" /><ref name=":2" />
 *'''TCPA violations'''
 ::A 2024 court ruling found Allstate vicariously liable for illegal robocalls made by subcontractors, violating the Telephone Consumer Protection Act.[6]
@@ Line 61: / Line 61: @@
 :Negative reviews cite poor customer service, claim delays, and premium hikes without improved coverage.[2][7]
 ''Allstate'' has disputed some claims, citing third-party reports supporting its practices.[4]
-== Products ==
+==Products==
 {{Placeholder box|This is a list of the company's product lines '''with articles on this wiki'''.
 * [[Example product line one]] (release date): Short summary of the product's incidents.
@@ Line 68: / Line 68: @@
-== See also ==
+==See also==
 {{Placeholder box|Link to relevant theme articles or companies with similar incidents.}}
 [[Category:Allstate]]