The suit filed by the NAPAA alleges that the insurer was in breach of contract.
The National Association of Professional Allstate Agents (NAPAA) representing the insurer’s insurance agents, alleges that the company was in breach of contract.
The NAPAA filed the lawsuit in the US District Court, Northern District of Illinois on May 18, 2021.
With the lawsuit, the insurance agents seek injunctive relief, declaratory relief, and monetary damages. This civil action is based on eleven counts of breach of contract. The NAPAA and a number of former agents who worked for the insurer said in the lawsuit that Allstate interfered with potential sales of the agents’ book of business. All tolled, this cost the agents millions of dollars, said the filing.
The NAPAA also alleges that Allstate made it possible for independent agents to sell the insurer’s policies in areas “Allstate Exclusive Agents” (EA) were already serving. EAs are captive agents who work directly under the insurer. Such an action would not only breach the insurance company’s agreement with its EAs but would also cause those agents to suffer lost revenue.
The NAPAA also alleged that the insurer “poached” policies from the exclusive Allstate agents.
According to the NAPAA filing’s claims, the insurance company did this by way of its own Customer Contact Center (CCC), as well as through its internet policy portal. Though EAs do not have any obligation to advise the CCC of any of its clients, the insurer “regularly accesses the private computer systems of EAs” in order to obtain the customer information of potential policyholders through the CCC/internet portal.
The NAPAA claims that once the information has been retrieved, it makes it possible for the CCC to contact those potential customers directly, binding the coverage. This removes the possibility for the EAs to earn full commission on those individuals.
Attorney James Bopp Jr. is handling the NAPAA lawsuit, according to a report from Crain’s Chicago Business.
“I like to use my legal talents to help people who need help and are treated unjustly,” said Bopp Jr. about the insurance agents’ lawsuit. “This just screams out unjust.”