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  • gemhound gemhound Oct 2, 1999 10:34 AM Flag

    Hurricane Floyd and ALL

    Perhaps MKA said they were thinking of dropping
    Colossus, since more and more attys are using it in court,
    and juries don't seem to like the whole concept. Here
    is something that just came across our desk -- a
    judicial decision that favored Allstate, but juries think
    differently:

    From Kosierowski v All State 51 F.Supp.2nd 583: Please
    read entire opinion. Although court granted All
    State's motion for summary judgement, it was fact
    specific, and it spoke strongly about Colossus. I would
    note how this opinion belies All State's promise (?)
    to it's insureds about being in good
    hands:

    Plaintiff next alleges that Allstate acted in bad faith by
    utilizing a computer program, Colossus, that calculated the
    value of claims based upon "irrelevant" variables.
    Plaintiff also argues that Allstate has a policy of
    offering settlements of five percent below the value it
    internally assigns in an effort to increase its profit
    margin. This policy appears to exist with respect to at
    least some claims. See, e.g., Def.'s Motion in Limine
    to Preclude Testimony by Sciotti, Ex. G (affidavit
    stating that Allstate's Harrisburg office has this policy
    with respect to third-party claims); Plf.'s Ex. 31 at
    47 (deposition of David Graham, evaluation
    consultant at Allstate); Plf.'s Ex. 34 (excerpt from
    handbook stating that Allstate can increase profits by $34
    million a year in UM/UIM by reducing all settlements by
    up to five percent). ... *595 [14][15] The
    difficulty in the present case is that the plaintiff has no
    information to demonstrate that such offending practices had
    any effect on her case. Allstate did use the Colossus
    program in calculating Kosierowski's
    claim...

    ===============

    Just a bit of trivia. Colossus was a tongue-in-cheek
    name given by IT. It referred to a geek-popular TV
    movie of a few years ago where an evil computer tried
    to destroy the world. Hope too many jury members
    haven't seen that movie ;')

    Speaking of the Big
    Monday Prediction, we aren't so bad ourselves. We told
    our associates about the 20/20 expose three months
    before it aired. We knew about the FBI raid four days
    before it got into the newspapers. We knew this stock
    was going to 20. We know there is more bad stuff
    coming out of CA. So maybe we Do know just a little bit
    about this company.

 
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