Key Takeaway
Pattern of Allstate mailing failures emerges in New York courts, with multiple 2016 cases showing the insurer's inability to prove timely delivery of denial letters.
Multiple Court Cases Reveal Systemic Allstate Mailing Problems
The proper mailing of insurance correspondence is a critical component of no-fault insurance claims processing in New York. When insurance companies fail to demonstrate they’ve properly mailed denial letters or other required communications within statutory timeframes, it can result in significant legal consequences. A series of 2016 New York court decisions highlights what appears to be a pattern of mailing deficiencies at Allstate Insurance Company.
In no-fault insurance litigation, insurance carriers must prove they timely mailed denial letters to preserve their right to contest claims. The burden of proof lies with the insurance company to demonstrate not only that correspondence was sent, but that it was mailed within the required timeframes and to the correct addresses. When insurers cannot meet this burden, courts typically rule in favor of the healthcare providers or other parties seeking payment.
The cases cited below represent multiple instances where Allstate struggled to provide adequate proof of proper mailing practices, raising questions about the company’s internal procedures for handling certified mail and regular mail requirements.
Jason Tenenbaum’s Analysis:
I am unsure what has changed at Allstate but there seems to be an issue proving anything is timely, properly or even close to mailed
Cpm Surgical Supply, Inc. v Allstate Prop. & Cas. Ins. Co., 2016 NY Slip Op 51377(U)(App. Term 2d Dept. 2016)
Synergy First Med., P.L.L.C. v Allstate Ins. Co., 2016 NY Slip Op 51365(U)(App. Term 2d Dept. 2016)
K.O. Med., P.C. v Allstate Ins. Co., 2016 NY Slip Op 51367(U)(App. Term 2d Dept. 2016)
Ultimate Health Prods., Inc. v Allstate Ins. Co.. 2016 NY Slip Op 51353(U)(App. Term 2d Dept. 2016)
Compas Med., P.C. v Allstate Ins. Co., 2016 NY Slip Op 51356(U)(App. Term 2d Dept. 2016)
Renelique v Allstate Ins. Co., 2016 NY Slip Op 51357(U)(App. Term 2d Dept. 2016)
Key Takeaway
These six separate Appellate Term decisions from 2016 demonstrate a concerning pattern at Allstate Insurance Company regarding their ability to prove proper mailing of insurance correspondence. The concentration of similar adverse rulings within the same time period suggests potential systemic issues with Allstate’s mailing procedures and record-keeping practices, which directly impact their ability to defend no-fault insurance claims in New York courts.
