For the first time, a court ruled Allstate Insurance Co.'s controversial claims processing policy, which discourages claimants from hiring lawyers, amounts to the unauthorized practice of law. The ruling increases Allstate's potential liability in the case by millions of dollars. The judge ruled Allstate "engaged in the unauthorized, negligent practice of law and breached its fiduciary duties" to the plaintiffs. At least 50 similar court challenges dealing with Allstate's policy are pending in 22 states.
January 31, 2000 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
For the first time, a court has ruled that Allstate Insurance Co.’s controversial claims processing policy, which discourages claimants from hiring lawyers, amounts to the unauthorized practice of law.
The ruling exposes the nation’s second-largest automobile insurer to millions of dollars more than it otherwise would have been on the hook for.
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