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Allstate Resolves Class Action Lawsuit With Strasen

Settlement includes all Allstate and Encompass entities

Allstate has entered into a settlement of a nationwide class action lawsuit, Strasen vs. Allstate, that has been pending in the Circuit Court of Madison County, Illinois for almost ten years.

This settlement includes all Allstate and Encompass entities. The Court preliminarily approved the settlement on July 16, 2009. Plaintiffs alleged that Allstate utilised a computerised medical bill review system provided by ADP, which failed to correctly calculate medical expenses from automobile and homeowner’s claims.

Allstate continues to believe that its medical bill review practices were and are appropriate and fully comply with the law, but agreed to resolve the case on terms Allstate considered fair and appropriate, to avoid the burden and expense of continued litigation.

Allstate believes its bill review procedures help policyholders increase their benefits by reimbursing providers the appropriate amount for services. Allstate’s policy is to try to resolve billing disputes with providers while protecting its policyholders’ interests.

The Allstate Corporation is a publicly held personal lines insurer.