(Bloomberg) --Oklahoma's attorney general sued Allstate Corp., alleging the insurer schemed to minimize payouts to homeowners for wind and hailstorm damage in order to boost its profits.
The state's top lawyer, Gentner Drummond, alleges that Allstate implemented an internal program to drastically deny or minimize payments of legitimate covered losses,
"This lawsuit is about protecting Oklahoma homeowners and holding insurance companies accountable when they fail to honor the promises they make to policyholders," Drummond
The state attorney general seeks civil penalties and aims to dismantle the insurer's alleged racketeering enterprise, according to the complaint.
"This lawsuit has no merit and serves billboard lawyers who turn routine insurance claims into lawsuits, making insurance more expensive for everyone," Allstate said in an emailed statement. "Allstate is committed to supporting customers with timely and fair claim payments based on their policy to help them recover from storms."
Insurers across the US face increasing scrutiny over their claims-handling practices as losses from weather-related events such as hurricanes, wildfires and hail storms pile up as a result of climate change.
In California, the state's insurance regulator alleged State Farm General Insurance Co. mishandled claims related to the 2025 Los Angeles wildfires and
In Oklahoma, Drummond claims that third-party engineering firms and adjusting companies participated in the alleged scheme with Allstate, providing reports that supported predetermined objectives to deny or reduce claims.
The lawsuit also alleges that Allstate and its network of agents engaged in deceptive sale practices, incorrectly telling clients their homeowners' insurance would provide full replacement coverage for wind or hail damage.
