Allstate Insurance Company was ordered by a Missouri trial court to produce documents related to its “McKinsey Study” program, and Allstates relatively new claims handling program.
Allstate, refusing to make public just how shady its claims handling processes are for automobile accident victims, has accepted as a business proposition a $25,000.00 per day sanction from Judge Michael Manners.
While I am a licensed Missouri attorney, graduate of Mizzou Law in 1996, I have never had the pleasure of practicing before Judge Manners. However, I believe the Court is in for a rude awakening when dealing the Allstate. The level of abuse and arrogance Allstate is willing to shell out to victims of automobile negligence is legendary.
In the middle to late 1990s, Allstate figured out a few things about how they handled automobile collision claims. Foremost, they figured out that lawyers representing automobile accident victims were used to “easy settlements.” They also figured out that lawyers made claims settle for two to three times higher than claims where a victim handled a claim without an attorney
In an effort to “change the game,” Allstate developed a program designed to specifically to reduce the rates at which victims retain an attorney. The program was comprehensive, ranging from quick, low offers to those who were in desperate need of money, lawyer-bashing (all too obvious and easy), and a program to make lawyer’s lives miserable by shifting costs and delays to the victims burden.
Some people argue that, when you are suing another person, in an adversarial system like the US legal system, this is ok. And to a point, I would agree. Allstate takes the program WAY beyond that point.
Besides, Allstate does not limit its practices to third-party claims. If you are an Allstate insured and you have to make a claim on your own policy, you are up against the same onerous process. Yes, your own insurance carrier, to whom you have paid premiums diligently for years and years, will put you through the ringer in an effort to get you to abandon your claim, or take less to make the onerous process stop.
In the case I just read about in Jackson County, rather than comply with the Court’s order, Allstate has accepted as a business expense a $25,000.00 per day fine. The arrogance of this is astounding.
Remember, if you have a car accident where you were injured, pray that Allstate is not the company you have to deal with. If it is, get yourself a lawyer right away! You’re going to need one!
For more information on this subject, please refer to the section on Car and Motorcycle Accidents.