NORTHBROOK, Ill., Jan. 6, 2012 /PRNewswire/ -- The Allstate
Corporation (NYSE: ALL) announced today that the Superior Court of
New Jersey has entered judgment in
favor of Allstate New Jersey Insurance Company (Allstate New
Jersey), a wholly owned subsidiary of Allstate Insurance Company,
and dismissed all claims in the franchise lawsuits filed against
Allstate New Jersey.
Last year, three exclusive agents filed lawsuits seeking to
prevent the termination of their agency agreements for failing to
meet certain business objectives. They alleged they had
franchise relationships with Allstate New Jersey and were protected
under the New Jersey Franchise Practices Act. The plaintiffs'
application to stop their termination was denied.
The court determined that the agents were not franchisees and
have no protections under the New Jersey Franchise Practices Act.
The court noted in its decision that the "insurance industry has
never been found by any court in New
Jersey, or elsewhere, to be home to an insurance company
franchisor, or agent franchisee."
Allstate has maintained that exclusive agents are independent
contractor agents and not franchisees. The court decision affirms
the company's position.
The Allstate Corporation (NYSE: ALL) is the nation's largest
publicly held personal lines insurer known for its "You're In Good
Hands With Allstate®" slogan. Now celebrating its 80th anniversary
as an insurer, Allstate is reinventing protection and retirement to
help nearly 16 million households insure what they have today and
better prepare for tomorrow. Consumers access Allstate insurance
products (auto, home, life and retirement) and services through
Allstate agencies, independent agencies, and Allstate exclusive
financial representatives in the U.S. and Canada, as well as via www.allstate.com and
1-800 Allstate®.
SOURCE The Allstate Corporation