Insurance

Allstate facing lawsuit from agents’ group

An association of insurance agents for Allstate has filed a lawsuit against the insurer, alleging a breach of contract.

The lawsuit was filed by the National Association of Professional Allstate Agents (NAPAA) in the US District Court, Northern District of Illinois on May 18, 2021. The civil action seeks declaratory relief, injunctive relief, and monetary damages based on eleven counts of breach of contract.

In its lawsuit, the NAPAA and several former agents allege that Allstate interfered with potential sales of agents’ book of business, which collectively cost them millions. The group also alleges that Allstate allowed independent agents to sell Allstate policies in areas that are already served by “Allstate Exclusive Agents” (EA) – captive agents who already directly serve under Allstate – which not only breaches the insurer’s agreement with its EAs, but also results in revenue lost for the EAs.

NAPAA additionally alleged that Allstate “poached” policies from EAs through its own Customer Contact Center (CCC) and internet policy portal. While EAs are not obligated to notify the CCC about any clients, Allstate “regularly accesses the private computer systems of EAs” to retrieve prospective customer information through its CCC/internet portal. The association claims that the CCC can then contact prospective customers directly and bind the coverage, making EAs lose the potential for full commissions.

Crain’s Chicago Business reported that the NAPAA’s lawsuit is being handled by attorney James Bopp Jr.

“I like to use my legal talents to help people who need help and are treated unjustly,” said Bopp Jr. “This just screams out unjust.”

Crain’s also reached out to Allstate for a statement, but the insurer was unable to give a comment in time for publication.

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