Insurance Commissioner Fines Allstate $40k

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Washington state Insurance Commissioner Mike Kreidler announced on Tuesday he issued $40,000 fine to the Allstate Fire & Casualty Insurance Company.

Following an internal referral, the OIC reports it randomly selected 95 Allstate auto insurance claims from April to September 2022 for review.

On four separate claims, OIC staff found that the company failed to provide an appropriate reply to a lienholder about the status of a claim and made a payment on that claim 123 days after the initial demand.

Allstate, according to OIC investigators, also failed to confirm or deny coverage on a car until 195 days after the initial report as well as paying for a subrogation claim until 160 days after the demand. Finally, Allstate failed to affirm or deny coverage for a personal property claim in a stolen car, the OIC reports.

Each violation will cost the company $10,000, the OIC reports further.

From July through September of 2024, the OIC reports it issued $302,500 in fines against insurance companies, agents, brokers and unlicensed entities statewide for violations of state law.

Other insurers fined this past quarter include Delta Dental of Washington, Continental Casualty Company, Geico, VSP Vision Care Inc., and HDI Global Insurance Company, the OIC reports.

You can see which insurers the OIC has fined for violations dating back to July of 2024 at the office's website.