TRUONG VS. ALLSTATE INSURANCE COMPANY

April 12, 2010 – Volume 49, No. 15

From the New Mexico Supreme Court  2010-NMSC-009, No. 31,013:
Truong v. Allstate Insurance Company 

A certified class of Allstate insureds sued Allstate for alleged violations of the Unfair Practices Act (UPA), claiming that Allstate improperly used computer programs (Colossus) to underestimate and underpay first party insurance claims. At issue was whether a Market Conduct Examination (MCE) authorized by the Superintendant of Insurance constituted express permission to use Colossus exempted Allstate from claims under the UPA. In a lengthy opinion, Justice Daniels held that the MCE did not create the express permission necessary to exempt Allstate from UPA claims for the use of Colossus

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