Allstate Socked with $16 million Verdict in Head-on Crash
The three-pronged claims tactic of Allstate Insurance Company (delay, deny, defend) cost the company more than $16 million in damages resulting from a head-on car crash which happened in Missouri in 2000. Allstate had an opportunity to settle the claim for $50,000 (hospital bills alone were $320,000), but instead chose not to respond to the injured parties offer. That choice resulted in a jury award of $5.8 million in compensatory damages and an additional $10.5 million in punitive damages for Allstate’s bad faith refusal to settle. http://www.kansascity.com/business/v-print/story/726338.html July 29, 2008.
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