Allstate in the Hot Seat as AG Drummond Expands Insurance Crackdown

Oklahoma’s Attorney General Gentner Drummond isn’t finished fighting insurance companies that he says are systematically shortchanging homeowners. On Tuesday, he filed a lawsuit against Allstate, Oklahoma’s third-largest writer of homeowners insurance, in Cleveland County—and this time, he’s alleging the company operated what it internally called a“Disaster Payment Minimization Scheme.”

This is Drummond’s second major insurance salvo in as many weeks. He filed a similar lawsuit against State Farm on June 24, also in Cleveland County, after Oklahoma’s Supreme Court essentially gave him the green light to try a different approach. Now, with summer storms still battering the region over the holiday weekend, the timing feels particularly pointed. The petition accuses Allstate of violating the Oklahoma Consumer Protection Act, Oklahoma’s Racketeer Influenced and Corrupt Organizations Act, civil conspiracy, and unjust enrichment—heavy legal artillery typically reserved for organized crime cases.

What makes this fight interesting isn’t just the aggressive legal strategy. It’s that Drummond’s office is banking on getting its hands on Allstate’s internal documents. The petition notes that“the precise internal name, dates of rollout, and written directives are all within Allstate’s exclusive possession, custody, and control.”In other words, Drummond is hunting for a paper trail that could prove the company deliberately structured its claims process to pay less.

The move caught the attention of Oklahoma City attorney Jeff Marr, who’s filed suits on behalf of hundreds of State Farm policyholders and at least 50 against Allstate. He’s heard from plenty of Allstate customers who watched the State Farm headlines and realized they might have a problem too.“People were saying,‘What about me?'”Marr said. He wasn’t surprised by Drummond’s action, noting that“the bad faith practices are not limited to just State Farm. Allstate and its‘good hands’are right behind.”

Drummond, who’s running for governor, framed the lawsuit as protecting hardworking Oklahomans.“When insurers put profits ahead of policyholders, it’s hardworking families and individuals who ultimately pay the price,”he said. But his closing comment—that he’d“continue fighting to ensure Oklahomans receive the coverage they paid for”—suggests this crusade isn’t over. Allstate declined to comment.