OKLAHOMA CITY (July 7, 2026) – Attorney General Gentner Drummond today filed a lawsuit against Allstate Insurance Company, alleging the insurer engaged in a coordinated scheme to wrongfully deny or underpay legitimate wind and hail damage claims submitted by Oklahoma homeowners.
Filed in Cleveland County District Court, the lawsuit alleges Allstate implemented an internal program referred to as the "Disaster Payment Minimization Scheme" that was designed to reduce claim payments and increase corporate profits. According to the petition, Allstate marketed homeowners policies as providing replacement cost coverage for storm-related damage while allegedly using undisclosed internal standards and claims-handling practices to limit coverage and reduce payments to policyholders.
“This lawsuit is about protecting Oklahoma homeowners and holding insurance companies accountable when they fail to honor the promises they make to policyholders,” Drummond said. “Consumers pay their premiums expecting their insurance company to be there when disaster strikes. When insurers put profits ahead of policyholders, it's hardworking families and individuals who ultimately pay the price.”
The State alleges Allstate systematically altered its claims process by limiting the authority of field adjusters, relying on third-party inspectors and reviewers, and applying restrictive internal standards that were not disclosed to policyholders. The lawsuit contends these practices resulted in the denial or underpayment of valid storm-related claims across the state.
“Insurance companies have a legal and contractual obligation to treat policyholders fairly, communicate honestly and evaluate claims in good faith,” Drummond said. “I will continue fighting to ensure Oklahomans receive the coverage they paid for and the honest dealings they deserve.”
The petition alleges violations of the Oklahoma Consumer Protection Act and the Oklahoma Racketeer-Influenced and Corrupt Organizations Act, as well as civil conspiracy and unjust enrichment. The State is seeking injunctive relief, civil penalties, disgorgement of profits and restitution for affected consumers.
