A former Allstate agent in Minnesota has filed a lawsuit againstthe insurer, alleging it violated state law when it terminated himfor failing to meet life insurance quotas.

The National Association of Professional Allstate Agents(NAPAA), affiliated as a guild with the Office andProfessional Employees International Union, says it has beenworking closely with Jerry Deleski, a former Allstate of 39years.

NAPAA says the insurer was investigated by the MinnesotaDepartment of Commerce was charged with violating two statestatutes while dismissing Deleski. Allstate agreed to pay a $5,000penalty in lieu of facing formal proceedings on the charges, NAPAAsays.

Allstate spokesman Justin Herndon says, “Allstate cooperatedfully with the Minnesota Department of Commerce's investigation ofMr. Deleski's claims, which the company resolved amicably with thedepartment. [Allstate] believes Mr. Deleski's lawsuit ismeritless and the company intends to defend against itvigorously.”

NAPAA alleges the problem is bigger than Deleski. Theassociation says the number of Allstate agents hasdeclined nearly 30 percent since 2007, and in 2006 theinsurer imposed a new quota system requiring agents to meetspecifc sales goals. Failure to meet the goals would results in theloss of the agents' contracts, says NAPAA.

“While we know nearly 4,000 agents have parted ways withAllstate – many of them involuntarily – the company has beenreplacing them with new, but often less experienced, individuals,”says Jim Fish, NAPAA's executive director, in a statement. “Webelieve the firings were not only ill-advised, but have acceleratedthe company's fall from second to third place among top autoinsurers.”

NAPAA estimates the number of agents in the state of Minnesotawas about 158 in 2007. The count todays stands at 84exclusive agents under contract.

NAPAA says Deleski's case, if it were to succeed, would seta precedent for other former Minnesota insurance agents torecover damages for the unlawful termination of theircontracts.