WTO wins for Allstate in purported class action before the Colorado Supreme Court
In a purported class action, Allstate Insurance was alleged to have failed to make certain statutorily mandated disclosures associated with automobile underinsured and uninsured motorist (UM/UIM) policies when it sold umbrella policies to the purported class. Allstate successfully defended the action in the Denver District Court, where it obtained summary judgment.
On appeal, the intermediate court affirmed. The Colorado Supreme Court granted the petition for certiorari. Based on class allegations, the damage claims, which included free, lifetime benefits for auto accident victims who had purchased umbrella policies, were alleged to be between $10 million and $100 million. Following oral argument, on June 21, 2011, the Supreme Court affirmed the Colorado Court of Appeals decision in Allstate's favor, concluding that the offer of UM/UIM coverage is not required when selling umbrella coverage.