Washington State Insurance Commissioner Mike Kreidler has fined Allstate Fire & Casualty Insurance Co. $40,000 following an internal referral that led Kreidler’s office to randomly select 95 auto insurance claims from April to September 2022 for review.

According to a press release from the Office of the Insurance Commissioner (OIC), staff found on four separate claims that Allstate:

• • “Did not 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;
  • “Failed to confirm or deny coverage on a car until 195 days after the initial report;
  • “Failed to make a payment for a subrogation claim until 160 days after the demand;
  • “Failed to affirm or deny coverage for a personal property claim in a stolen car; and
  • “Each finding violated the Washington state insurance code, punishable by a $10,000 fine.”

The Allstate fine is part of a $302,500 against insurance companies, agents, brokers, and unlicensed entities in the state from July through September for violations of state insurance laws and regulations. Allstate’s was the only fine of the most recent issued by the Washington OIC against a P&C insurance company for auto claims handling.

By doing so, the OIC says Allstate violated four state laws, including several sections of WAC 284-30-330 regarding unfair claims settlement practices.

Earlier this year, the OIC fined Allstate $25,000 for mishandling an auto insurance claim by providing a low damage estimate. The insurance company also incorrectly stated that a right to appraisal could not be invoked after repairs had been made, failing to conduct the appraisal in a timely manner, according to the OIC.

Allstate initially paid $8,816 for a vehicle crash claim filed in January 2023, an amount that the policyholder’s repair shop said was too low to return the vehicle to pre-loss condition, a June 17 consent order says.

Months of battle between the policyholder and Allstate ensued until an umpire determined the cost of repair to be $29,395, more than $20,579 higher than Allstate’s estimate. In late October, nine months after the crash, Allstate paid the claimant $27,607.

The state’s order says Allstate used unfair methods of competition and unfair or deceptive acts or practices, specifically misrepresenting pertinent facts or insurance policy provisions. It also failed to make a good faith effort to settle a claim before exercising a contract right to appraisal.

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