Allstate Sued by Fla. Imaging Center

Chicago-area based direct writer Allstate Insurance Co.’s Florida personal injury protection policyholders have filed a class action suit on their behalf by the law firm of Forizs & Dogali.

Premier Open MRI, the named plaintiff, is a Jacksonville, Fla., imaging center. The class plaintiffs are insureds of Allstate and Deerbrook Insurance Co. who suffered automobile accidents and received magnetic resonance imaging tests pursuant to orders of their treating physicians.

They allege that Allstate and Deerbrook have been systematically and routinely denying payment for MRIs under the PIP policies, contrary to the policies and Florida law. They assert that since sometime in 2002 Allstate and Deerbrook have been improperly second-guessing the medical need for MRIs, even though the MRIs were ordered by treating physicians and even though Allstate and Deerbrook are not licensed to practice medicine.

Andy Dogali, attorney for the plaintiff, estimates that the number of insureds whose claims have been wrongfully denied numbers in the
thousands.

“Premier’s experience with Allstate is typical of the average imaging center in the State of Florida,” Mr. Dogali stated. “Applying that experience through more than a couple hundred imaging centers around the state, there are probably several thousand Florida policyholders who have received MRIs and then had Allstate and Deerbrook wrongfully refuse payment.” The claim is substantial, as MRIs typically cost more than $1,000 each.