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In Lexington, Kentucky, Attorney J. Dale Golden filed suit against Allstate on behalf of one of their insureds, Geniva Hager. Internal documents obtained during discovery against Allstate Insurance Company show that the company and their consultants created a computer program to generate low settlement values for injury claims, sent fraudulent data to government regulators to avoid investigation and, as a business model, invited lawsuits over it’s claims handling as simply a “cost of doing business”.

During opening statement, Plaintiff’s counsel showed the Fayette County Jurors 23 slides of what has come to be recognized as “The MacKenzie Documents” which were originally prepared by a consulting group retained by Allstate to Restructure their claims handling approach in the early 1990s.

The most damning document evidenced how Allstate planned to restructure the time frame of settlement on claims. The new approach designed by the consulting firm for Allstate showed that 90% of the claimants who settled within 250 days on miniscule offers were “in good hands”. The 10% of Allstate claimants who refused to settle for low ball offers got “the boxing gloves” from Allstate.

Internal documents from Allstate’s business plan from the consulting group showed how they could earn over $450,000,000 from the new approach to handling claims. The consulting group called this approach “core claim process re-design” and it was implemented by Allstate in 1995.

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