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Case ID: 4833 | Insurance | 06/06/2006
Ten Illinois residents filed a class action lawsuit against Allstate Insurance Company alleging the insurance company charges different premiums to customers with the same risks.
The plaintiffs allege Allstate violated the Illinois Consumer Fraud and Deceptive Business Practices Act and was unjustly enriched. According to the complaint filed May 25 in St. Clair County Circuit Court, Illinois law mandates that insurers treat like risks alike and different risks differently. "Indeed, this fundamental concept underlying what is commonly referred to in insurance parlance as fair discrimination," the complaint states. "Unfair discrimination in premium rates, or fees, on the underhand is prohibited." Unfair discrimination is the practice if charging different premiums, policy fees, or rates to individuals with similar insurance risk. "Through the simultaneous use of multiple and differing insurance scoring schemes, Allstate has continuously and systematically engaged in an unlawful pattern and practice of unfair discrimination against consumers in Illinois in the determination of rates, premiums, policy pricing and/or availability of insurance," the complaint alleges. The plaintiffs claim the use of multiple and differing scoring schemes is not based on sound actuarial principles. They also allege Allstate has used them as a basis for charging varying premiums even though they all have similar risks. "Allstate's acts or practices were unfair as they offended public policy, are immoral, unethical, oppressive, or unscrupulous and cause substantial injury to consumers," the complaint states. Allstate's alleged "immoral and unethical practices" serve only to benefit Allstate at the expense of the consuming public, plaintiffs claim. "These acts resulted in Allstate receiving millions of dollars in revenue to which they are not entitled," the complaint alleges. "Allstate's unfair acts served no purpose other than to increase its own profits." The plaintiffs' claim they were unaware of Allstate's alleged wrongful conduct and were unable to discover it until 2006. "All Illinois residents who purchased or renewed an Illinois private passenger automobile and/or homeowners' insurance policy from Allstate Insurance Company, Allstate Property and Casualty Insurance Company, or Allstate Indemnity Company and who suffered monetary losses as a result of Allstate's simultaneous use if multiple and differing insurance scoring schemes," are eligible to join the class. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Insurance Cases of Interest On 12/13/04, CIGNA HealthCare announced that it has reached a settlement in lawsuits brought on behalf of a nationwide class of specialty health care providers and certain state and national associations. The agreement must be approved by the United States District Court in Miami. Life insurance can be a great investment, as long as the company you buy from is reputable. A class action has been filed against Philadelphia Life Insurance Company and its successor, Conseco, Inc., on behalf of persons who purchased certain whole life and universal life insurance policies. The action alleges that Philadelphia Life fraudulently induced policyholders to replace existing policies when it was not in their best interest, and promised them that their new premiums would never increase.
The parties have reached a proposed $6,305,000 settlement in a class action against Coast National Insurance Company by former California automobile insurance policyholders who claim that Coast National wrongly canceled their policies for nonpayment of premiums. To recover under the settlement, class members must submit a claim form postmarked by September 15, 2003. The parties have reached a final settlement apparently valued at $3 million in an action filed against Safeco Insurance Company of America and related companies on behalf of Montana customers who filed uninsured, underinsured and medical claims against the company from 1996 to the present. The action alleged that state insurance provisions prohibiting "stacking'' of multiple insurance policies were unenforceable. Persons eligible to participate in the settlement should contact attorneys for the class for more information as soon as possible. A class action lawsuit has been filed in the Northern District Court of Illinois against Abbott Laboratories and Hospira, Inc. for violations of the employee retirement income security act (ERISA). A class action has been filed against Blue Cross of California on behalf of policyholders who allege that the insurer wrongfully changed their healthcare policies' premium basis from their age at initial enrollment to their attained ages at renewal time, in violation of the terms of the policies. |
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