New Mexico Court Holds That Allstate's Use of Colossus Is Not Bad Faith
The New Mexico Court of Appeals has affirmed a trial court’s declaration that Allstate’s use of the computerized claims handling program “Colossus” does not violate the state’s unfair practices act. In Truong v. Allstate Ins. Co., No. 26,329 (N.M. App. November 30, 2007) the court ruled that Allstate’s use of the program fell within the regulatory exemption to the UPA set forth in Section 57-12-7 as state market conduct examiners had examined Allstate’s use of Colossus and had previously approved it.
