Oklahoma’s Attorney General Gentner Drummond has sued Allstate Corp., accusing the insurer of a deliberate scheme to underpay homeowners for wind and hail damage. The lawsuit, filed in Cleveland County District Court, alleges Allstate implemented an internal program called the "Disaster Payment Minimization Scheme" to limit claim payouts and boost corporate profits.

According to the state, Allstate misled policyholders by marketing replacement cost coverage for storm damage while secretly using undisclosed internal standards to restrict payments. The suit claims Allstate systematically altered its claims process, reducing field adjuster authority and using restrictive internal guidelines not shared with customers. This allegedly led to the wrongful denial or underpayment of numerous storm-related claims across Oklahoma.

The state is pursuing remedies under the Oklahoma Consumer Protection Act and the Oklahoma Racketeer-Influenced and Corrupt Organizations Act, seeking injunctive relief, civil penalties, disgorgement of profits, and restitution for affected consumers. The allegations, if proven, could lead to significant financial penalties for Allstate and potentially impact its claims handling practices nationwide.