Allstate found guilty of bad faith insurance practices

Jury makes bad faith claims handling practices judgment against Allstate with a $3.154 million punitive damages award

Source: Attorney David Laufer, Partner, Burke, Williams & Sorensen LLP
Judgment Date: November 23, 2009
Posted January 28, 2010

(Attorney David Laufer Reports To FBIC): Allstate was found guilty of bad faith in a November 23rd, 2009 jury trial decision. A jury found Allstate guilty of bad faith claims handling practices awarding $3.154 million in a punitive damages award against Allstate Insurance Company. The case was litigated
to a jury in the Central District of California; the district court.

In addition, Laufer notes that he introduced evidence of Allstate's claims handling and insurance record manipulation ... also citing that Allstate's record show that it failed to comply with the 1988 Allstate v. Fibus ruling and that Allstate continues to instruct its claims handling adjusters and coverage counsel NOT to review older policies -with broader coverage- to determine if those policies had been lawfully terminated or renewed. (Click here for a copy of the court's bad faith insurance judgment and order against Allstate.)

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