Allstate settles medical expenses lawsuit

by Gill Montia

Story link: Allstate settles medical expenses lawsuit

Allstate Corporation has announced that it has settled a US class action lawsuit, Strasen v Allstate, in which the plaintiffs alleged that the group had incorrectly calculated medical expenses under the medical payments or personal injury protection coverage afforded by its automobile and homeowner insurance policies.

The case, which has been pending in the Circuit Court of Madison County, Illinois for almost 10 years, centred on the accuracy of a computerised medical bill review system used by the personal lines giant.

Allstate continues to stand behind the system, supplied by ADP, claiming that it fully complied with the law.

However, the company says it has agreed to resolve the case to avoid further legal expenses.

The settlement class includes persons who submitted various types of household and automobile claims during the period 26th October 1989 through 16th July 2009.