Allstate Insurance Company, a subsidiary of
), has filed a lawsuit alleging fraud against three companies -
Gerald Surya, M.D., Sun Medical Care of Nassau, P.C., and Sky
Medical, P.C. - in a U.S. district court in N.Y. As per the
lawsuit, Sun Medical and Sky Medical forged false invoices and
submitted them to Allstate to collect insurance benefit payments.
These invoices charged an inflated amount for "unwarranted,
unnecessary and undelivered medical treatment and testing".
Allstate claims that the defendants were not eligible to
collect the No-Fault insurance benefit payments that they
received as the invoices were not accurate. Thus, the insurer is
claiming refunds of about $1.7 million from the N.Y.-based
This is the 2
insurance fraud lawsuit filed by Allstate in 2013. The company
claimed damages of over $233 million through 46 lawsuits filed in
N.Y. since 2003.
According to Allstate, as per the data provided by the
Insurance Information Institute, the No-Fault system is being
exploited by many companies. As a result, a huge amount of N.Y.
taxpayers' money is going to these fraudulent companies.
Allstate is not alone in seeking a remedy for this problem.
Many other insurance companies and leaders in N.Y. are working
toward a legislative reform to fix this critical problem.
Allstate currently carries a Zacks Rank #2 (Buy). Other
property and casualty insurers worth considering are
XL Group plc
Navigators Group Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy).
ALLSTATE CORP (ALL): Free Stock Analysis
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RLI CORP (RLI): Free Stock Analysis Report
XL GROUP PLC (XL): Free Stock Analysis Report
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