NU Online News Service, Aug. 19, 1:30 p.m.EDT

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Allstate Insurance Company announced the proposed settlement ofa nationwide class-action lawsuit alleging the company underpaidauto and homeowner injury claims.

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Plaintiffs in the Strasen v. Allstate case alleged thatAllstate utilized a computerized medical bill review systemprovided by ADP which failed to correctly calculate medicalexpenses from automobile and homeowner's claims, Allstate said.

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The case had been pending in the Circuit Court of MadisonCounty, Ill., for almost 10 years, Allstate said.

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A notice describing the proposed agreement said plaintiffssought a settlement because they recognized "the uncertainty andthe risk of the outcome of any litigation, especially complexlitigation such as this, and the difficulties and risks inherent inthe trial of such an action."

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The number of individuals in the class and the monies involvedremain to be determined. According to the notice, "Class memberswho can submit a valid claim form shall, subject to the applicablepolicy limits, receive 60 percent of the difference between theamount of the bills submitted and the amount previously paid byAllstate…."

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Allstate said while it has agreed to the settlement the company"has denied and continues to deny liability on each and every claimasserted by the plaintiffs."

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Mike Siemienas, communication manager at Allstate, said,"Although confident in our position, Allstate was presented with anopportunity to resolve this case on terms that we consider to befair and appropriate. By achieving this settlement, Allstate isable to avoid the burden and considerable expense of continuedlitigation. This is good for Allstate and its customers. Allstatebelieves its medical bill review practices are appropriate andfully comply with the law."

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