Allstate settles exam matter, creates $10 million education fund

NORTHBROOK Allstate Corp. today announced that it reached a final agreement in a multistate Market Conduct Exam. Allstate cooperated fully with the examination. After thorough review, the company said that state regulatory authorities found no institutional issues involving underpayment of claims.

The agreement stated that insurance department personnel need to be better trained to understand claim handling technology and its use. To help this education process, Allstate has agreed to create a $10 million education fund to provide for additional education for the departments, Allstate said.

Allstate over the years has used software technology to assist adjusters in evaluating claims for bodily injury. A thorough, multistate review of claims process confirms that Allstate's use of such technology “provides significant benefits to the public in increased objectivity and efficiency, and “did not identify institutional issues involving underpayment of claims, as stated in the agreement.