Oklahoma Attorney General Gentner Drummond 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. The lawsuit, filed on July 7, 2026, in Cleveland County District Court, accuses Allstate of implementing an internal program referred to as the "Disaster Payment Minimization Scheme" designed to reduce claim payments and increase corporate profits.
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. These practices allegedly resulted in the denial or underpayment of valid storm-related claims across the state. The lawsuit further claims that Allstate and its network of agents engaged in deceptive sales practices, incorrectly promising full replacement cost coverage for wind or hail damage to clients.
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. Drummond is seeking injunctive relief, civil penalties, disgorgement of profits, and restitution for affected consumers. The lawsuit aims to dismantle what the state describes as a company-wide system of deceptive practices affecting Oklahoma's homeowners insurance market, and a representative for Allstate did not immediately respond to a request for comment.
