Q. What is this lawsuit and Settlement about?

A. Allstate Insurance Company and certain of its subsidiaries and affiliates ("Allstate") have settled a lawsuit alleging that Allstate violated the Fair Credit Reporting Act ("FCRA") in connection with its use of credit reports to underwrite and rate automobile, homeowners, and other personal lines insurance policies. The plaintiffs contended, and Allstate contested, that Allstate did not have a permissible purpose under FCRA to obtain the credit reports of certain individuals and that Allstate did not send notices to certain individuals as required by FCRA. The plaintiffs also alleged that Allstate sent certain individuals notice forms that did not comply with FCRA, and that certain individuals received FCRA-required notice more than 60 days after Allstate issued them insurance policies. Neither this Settlement, nor the lawsuit, was about the prices Allstate sets for insurance policies or the insurance coverage it sells. In addition, the lawsuit did not challenge Allstate's right to use credit reports.

Q. Has the Court ruled on plaintiffs' claims?

A. No, the Court has made no determination whether Allstate has done anything wrong. Because this lawsuit was settled, the Court did not rule on any of plaintiffs' settled claims or on Allstate's defenses to those claims.

Q. How do I know if I am covered by the Settlement?

A. If you received a notice in the mail without requesting it from the Settlement Administrator, you were identified from Allstate's records as someone who is a Class Member. Class Members are those who: (1) were listed or identified as an insured by an individual applying for or renewing insurance under an Allstate personal lines policy of insurance, including an automobile or homeowners policy between February 2000 and October 31, 2004, and whose credit report was obtained by Allstate in connection with that application; (2) were issued an Allstate personal lines policy of insurance, including an automobile or homeowners policy between November 1998 and October 31, 2004, and who were not charged the lowest available premium based in whole or in part on information in their credit report and the credit report of another person insured under the policy; (3) were issued an Allstate personal lines policy of insurance, including an automobile or homeowners policy between November 1998 and October 31, 2004, but were not charged the lowest available premium based in whole or in part on information in your credit report and/or the credit report of another individual insured under your policy, and did not receive FCRA-required notice within 60 days from the date your policy was issued; and/or (4) were not issued an automobile, homeowners, or other personal lines insurance policy by Allstate, and, between November 1998 and October 31, 2004, received certain notices from Allstate which allegedly did not provide that Allstate's decision not to issue a policy was based in whole or in part on information from a consumer report from a particular source.

Q. Why did the parties settle?

A. In light of the uncertainty, risks, costs, and delays of further litigation, the parties believe that Settlement is in the best interest of the Class and Allstate. The Settlement is not an admission of wrongdoing by Allstate.

Q. What is the Fair Credit Reporting Act, or FCRA?

A. In 1970, Congress passed the Fair Credit Reporting Act (FCRA). The FCRA limits, among other things, the occasions on which a company may obtain your credit report. Among other things, it also requires the company, if it takes adverse action against you based in whole or in part on information in your credit report, to tell you of its decision. The company must also tell you the name of the credit reporting agency that provided your credit report to it, and information on how to contact that credit reporting agency. The company must also advise you of your right to obtain a free credit report if the company took adverse action against you based on your credit report.

Q. How do I know if I am a Class Member?

A. Notice of the proposed Settlement has been mailed to Class Members and notice has also been published in a section of Parade and USA Weekend magazines. You qualified as a member of this Settlement if you did not opt out of the Settlement and you are identified on a list of potential Class Members maintained by the Settlement Administrator. In order to receive additional benefits under the Settlement, you must have returned a Request Form following the procedures described in the Notice, postmarked by July 13, 2005. If you did not return your Request Form with a postmark no later than July 13, 2005, you are not entitled to any further benefits under the Settlement.

Q. What are the main terms of the Settlement?

A. The main Settlement terms are as follows:

1. Free credit brochure. If you received a Notice of Settlement, you also received a free credit brochure.

2. Free credit reports: All Class Members were entitled to a free credit report from TransUnion if they returned their Request Forms to the Settlement Administrator postmarked no later than July 13, 2005.

3. Cash payments and premium reductions: Class Members in Sub-Classes B and C who returned Request Forms to the Settlement Administrator postmarked no later than July 13, 2005 and receive free credit reports from TransUnion may qualify for cash payments, and, for current Allstate policyholders, potential premium reductions at their next policy renewal if they participated in a credit report correction process through this Settlement. The deadline for participation in this process has now passed.

With respect to members of Sub-Classes B and C who made corrections to their credit reports through the process set up by this Settlement, their correction information has now been processed by Trans Union and Allstate as required by the Settlement.

Beginning at the end of March 2007, the Settlement Administrator mailed notices to Class Members who participated in the credit report correction process informing them of further Settlement benefits, if any, they may be entitled to receive, along with any applicable Settlement payment. If, as a result of the credit report correction process, a Class Member's credit classification or insurance group, under Allstate's applicable rating rules, improved between the initial credit report and the corrected credit report, the Class Member received a cash payment. If a Class Member who receivied a cash payment is also a current Allstate policyholder, he or she is additionally entitled to a credit re-order at their next applicable policy renewal (which will be the next renewal processed by Allstate on or after May 15, 2007 and received by the policyholder at least 30-90 days thereafter)and, based on the results of that re-order, a possible premium reduction . At that time, Allstate will order a new credit report for the Class Member and include information from the new report in the renewal premium under Allstate's rating rules and procedures for that renewal policy. Members of Sub-Classes B and C who made corrections to their credit reports with TransUnion credit bureau as part of this Settlement but whose corrections did not improve their credit classification or insurance group under Allstate's applicable rating rules or whose Allstate policies were rated at something other than Allstate's best credit based rate for less than one policy period (six months for auto, 12 months for property policies) are not entitled to a cash payment or premium reduction.

4. Practice changes: In connection with this Settlement, Allstate will order credit reports only on individuals applying for or renewing automobile, homeowners, and other personal lines insurance policies and their spouses (if any) who are identified or listed as insureds under the insurance policies being applied for or renewed. In addition, where Allstate charges anything but the lowest available premium based in whole or in part on the credit reports of an individual applying for or renewing an automobile, homeowners, or other personal lines insurance policy and his or her spouse, Allstate will modify the language in the letters it sends to these customers under FCRA to state that the premium was the result, in whole or in part, of information from the credit reports of both spouses.

5. Release: If you did not exclude yourself from the Settlement, you forever released and discharged Allstate Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, Allstate County Mutual Insurance Company, Allstate Floridian Indemnity Company, Allstate Floridian Insurance Company, Allstate New Jersey Insurance Company, Allstate Texas Lloyd's, Deerbrook Insurance Company, Encompass Floridian Indemnity Company, Encompass Floridian Insurance Company, Encompass Indemnity Company, Encompass Insurance Company, Encompass Insurance Company of New Jersey, First Colonial Insurance Company, and Northbrook Indemnity Company and each of their respective present and former officers, directors, partners, shareholders, agents, independent contractors, employees, predecessors, successors, assigns, parents, affiliates, subsidiaries, insurers, and attorneys, and the agents and employees of any of them, from and against any and all actions, causes of action, obligations, costs, fees, sanctions, damages, losses, claims, liabilities and demands (hereinafter collectively referred to as "Claims") in any way based upon or arising, from October 31, 1998 to date of final approval of the Settlement, in any way under the Fair Credit Reporting Act, or any state laws or regulations that impose obligations on users of consumer reports, like Allstate, that are similar, or related to, the obligations imposed on Allstate under the Fair Credit Reporting Act, that Class Members ever had, now have, or hereafter may have arising out of Allstate's obtaining and using any "credit report," as that term is defined in the Fair Credit Reporting Act, 15 U.S.C. §1681a, in its underwriting and/or rating of policies. Except as expressly provided in the Settlement Stipulation, such releases and discharges will extend to all such Claims of any and every kind and character, known or unknown, developed or undeveloped, suspected or unsuspected, which ever existed, now exist or may hereafter exist, and class members expressly waive all rights with respect to such claims. Each Class Member who is a resident of California, or who was a resident of California during the time periods identified in the definition of "Class" in the Settlement Stipulation, waives the application of California Civil Code Section 1542, which provides as follows: "A general release does not extend to claims that the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his Settlement with the debtor."

Q. I am in Sub-Class B/C, what are my additional benefits?

A. In addition to your free credit report and credit brochure, if you returned your Request form to the Settlement Administrator, post-marked no later than July 13, 2005, and participated in the credit report correction process, you may qualify for cash payments. Also, if you are a current Allstate policyholder, you may be eligible for a credit re-order at your next applicable policy renewal (which will be the next renewal processed by Allstate on or after May 15, 2007 and received by you at least 30-90 days thereafter)and, based on the results of that re-order, a possible premium reduction. In order to potentially qualify for this relief, you must have initiated the credit report correction process within 30 days after receiving your free credit report from Trans Union. If you failed to do so or if you did not dispute with Trans Union items in your credit report received in connection with this Settlement, you can no longer qualify for any additional Settlement benefits. If you participated in the credit report correction process, notification of the results and your Settlement payment, if any, will be mailed to you at the end of March 2007. It is possible that, though you made corrections to your credit report, those changes did not improve your credit classification or insurance group under Allstate's applicable rating rules or your Allstate policy was rated at something other than Allstate's best credit based rate for less than one policy period (six months for auto policies, 12 months for property policies). If either is the case, you are not be entitled to additional settlement benefits and you will receive a notice telling you that by the end of May 2007.

Q. How do I get Settlement Benefits?

A. You must have submitted a Request Form to get Settlement benefits post-marked no later than July 13, 2005. If you failed to do so, you are not entitled to any settlement benefits other than the credit brochure already provided to you. If you timely participated in the credit report correction process through this Settlement, notification of the results and, if you are entitled to a Settlement payment or premium reduction, payment and information about future premium adjustment were be mailed to you between the end of March 2007 and May 2007.

Q. How can I fix errors in my credit reports?

A. Additional information about this topic is available at the website www.ftc.gov. In general, you may notify a credit reporting agency that there are errors in your credit report, and provide any documents that you have to support your position. The agency may then conduct an investigation into the accuracy of the information, including contacting the source of the information that you believe is incorrect and obtaining verification. Generally, the agency has set time periods to investigate and report back to you. If the agency cannot verify the negative information, it may delete it. If the negative information stays in your file, you may have it marked as disputed information. The information provided in this paragraph is general and should not be considered as, or as a substitute for, legal advice. This information may not apply to your individual or factual circumstances. To learn more, consult the Federal Trade Commission's website at www.ftc.gov.

Q. If I don't want to participate in this Settlement, how do I get out of the Class?

A. You no longer have the right to opt out of the class - the time to do so expired on May 2, 2005.

Q. Who represents me?

A. The Court has appointed the following attorneys as Class Counsel to represent the Class Members in this litigation: Terry Smiljanich, James Hoyer Newcomer & Smiljanich; Ken Canfield, Doffermyre Shields Canfield Knowles & Devine LLC; and Charles McCallum, McCallum Law Firm.
In addition, the following individuals were appointed as Class representatives: Woodrow Shelton, Larry Daniels, Sr., Sandra Daniels, Cynthia Silhol, Marsha D. Myers, and Ronald Kelvin Myers.

If you would like to contact Plaintiffs' Counsel, please email them at allstatesettlement@jameshoyer.com, or call 800-874-0363 or 800-874-0365.

Q. Will Plaintiffs' Attorneys collect any fees or expenses from me?

A. No. Pursuant to the Settlement, counsel for the Class in this lawsuit applied to the Court for an award of attorneys' fees to be paid by Allstate and not by you. The attorneys' fees, as awarded by the Court, were paid by Allstate separate and apart from the Settlement relief available to Class Members.

Q. What is a "Class Action" or a "Settlement Class"?

A. A class action is a procedural device by which a court appoints representative plaintiffs and class counsel to represent a group of similarly situated persons (the class), and to bind them to a court judgment in a single proceeding. A settlement class is a class certified to allow a single judgment upon a final settlement to apply to the entire class.

Q. Did the Fairness Hearing take place and what occurred?

A. The Fairness Hearing took place on July 18-19, 2005. After consideration of the evidence presented at the Fairness Hearing, the federal District Court for the Middle District of Tennessee approved the Settlement between Allstate and plaintiffs with respect to certain claims in the federal multi-district litigation case of In re Allstate Insurance Company Underwriting and Rating Practices Litigation, MDL No. 3:02-md-1457.

Q. If I am not satisfied with just receiving a free credit report or the amount of the cash payment that I am entitled to under the Settlement, if any, can I challenge the fact that I only was entitled to receive a free credit report or the amount of the cash payment I received?

A. No. As stated in the notice ordered by the Court, if you chose to remain a member of this Class, you are now bound by the judgment and your claim has been fully resolved.

Q. What if I received a check, but it was then lost or destroyed or expired?

A. A replacement check might be issued, but only if the Settlement Administrator receives a request from you. Your request should include your name, current address, and daytime telephone number. Please mail your request to the following address: In Re Allstate Fair Credit Reporting Act Litigation SETTLEMENT ADMINISTRATOR c/o The Garden City Group, Inc., P.O. Box 9000 #6281, Merrick, NY 11566-9000. This information is needed to verify your identity and to determine whether a check should be reissued to you.

Q. I have moved and want to give you my change of address or I need you to send my Settlement check to a different address than the one listed on my Request Form. What should I do?

A. Please send a written change of address request to the Settlement Administrator at the following address: In Re Allstate Fair Credit Reporting Act Litigation SETTLEMENT ADMINISTRATOR c/o The Garden City Group, Inc., P.O. Box 9000 #6281, Merrick, NY 11566-9000. Please include your full name, current address, former address, and a daytime telephone number. The parties will verify your eligibility as a Class Member and update their records appropriately.

Q. I want to give the check back. Who should I send it to?

A. If you do not want the money, you do not have to return the check. If a check is not cashed or negotiated within 90 days, it will be void. However, if you chose not to opt out of the Class prior to the deadline, your refusal to accept the money does not change your status as a Settlement Class Member.

Q. Who can I contact if I have further questions?

A. The Settlement Agreement, Fourth Amended Complaint, and Notice may be viewed on this website www.creditreportsettlement.com. Many common questions can also be answered by calling the Settlement helpline at (800) 361-4132. This toll free telephone line will be terminated on December 1, 2007. You may also contact Plaintiffs' Class Counsel with your further questions through the Settlement Administrator by writing:

In Re Allstate Fair Credit Reporting Act Litigation
SETTLEMENT ADMINISTRATOR
c/o The Garden City Group, Inc.
P.O. Box 9000 #6281
Merrick, NY 11566-9000

or

You may contact Plaintiffs' Counsel at allstatesettlement@jameshoyer.com.

Q. Where can I get more information about my rights concerning my credit report?

A. You can find information at the following locations: www.ftc.gov (the Federal Trade Commission website), www.naca.net (the National Association of Consumer Advocates website), or www.nclc.org (the website for the National Consumer Law Center).

Q. I am in Class A only, how do I know whether credit was used to price my policy or only to determine whether to issue my policy?

A. You should call your insurance agent or 1.800.ALLSTATE. However, please be advised that Allstate cannot discuss the Settlement with you. Instead, Allstate is only able to address questions about your policy, including your premium and coverages or how credit information was used to underwrite or price your policy, unrelated to this Settlement. If you ask Allstate questions about this Settlement, they will refer you back to the Settlement website.

Q. How was my Settlement Class (or Classes) determined?

A. Allstate determined your Settlement class from a review of its records related to your policy or application for insurance. The definitions of each Settlement Class are contained in the Settlement notice that was sent to You and on the Settlement website.

Q. I am in Class A, but not Class B. Why?

A. You are in Class A because Allstate obtained your credit report in connection with your application or renewal of an Allstate personal lines policy of insurance. Your are not a member of Class B because either:

(1) you were charged the lowest available premium for your Allstate policy based on information in your credit report, or

(2) your credit information was not used by Allstate to price the policy you applied for or renewed.

Q. How do I know if I was charged the lowest available premium/best rate by Allstate for my policy?

A. If you are in Class A and not Class B then, according to Allstate's records, you were either:

(1) charged the lowest available premium for your policy, or

(2) your credit information was not used by Allstate to price the policy you applied for or renewed.

If you are in Class B then you were issued an Allstate policy and were not charged the lowest available premium based in whole or in part on information from your credit report or the credit report of another person insured under your policy.

Q. I recently corrected my credit report. What does this mean for credit report correction process in this Settlement? Will I still be able to get a monetary payment?

A. Under the terms of the settlement, the credit report correction process evaluated corrections made at the time of that process only and did not consider corrections made to your credit report previously. However, please keep in mind that the information contained within your credit report varies depending upon which consumer reporting agency creates your report. While consumer reporting agencies do share some correction information amongst themselves, they do not share all correction information. As a result, changes you make to your credit report through one consumer reporting agency may not be reflected on your credit report on file with another consumer reporting agency. Additionally, the information contained in your credit report changes from month to month. The credit report available to you through the Settlement was a current report from Trans Union. If you are a member of sub-class B or C and you participated in the Settlement credit report correction process, you may be entitled to a monetary payment only if you made corrections to the Trans Union credit report you received through the Settlement. In addition, if you are a member of one of these sub-classes and a current Allstate policyholder at the time of the credit report correction process, you may also be entitled to a premium reduction at your next policy renewal if you made corrections to the Trans Union credit report you received through the Settlement.

Q. How will Class Counsel be paid?

A. Counsel for the Class will not collect any fees or expenses from the class members, and no class member will have to pay anything to participate in the class action Settlement. The attorneys' fees in the amount of $8,000,000.00, as awarded by the court, was paid by Allstate separate and apart from the Settlement relief available to the class members.

The figure for the attorneys' fees was calculated based on factors including the amount of time and effort expended by the attorneys, the degree of expertise required, and the value of the Settlement to the class members. This class action Settlement is the result of several years of litigation and literally thousands of hours expended by numerous law firms across the country on behalf of more than 10 million class members. Specifically, there are 17 law firms throughout the United States that currently serve as class counsel. Many of these firms filed their class action complaints against Allstate several years ago. In fact, the James Hoyer law firm filed its first class action complaint in connection with this lawsuit in 2000.

These suits alleging violations against Allstate under the Fair Credit Reporting Act were consolidated and transferred to the United States District Court for the Middle District of Tennessee for proceedings known as multidistrict litigation. Before and after the cases were consolidated, class counsel conducted extensive investigation and legal research, drafted and filed pleadings, deposed Allstate's corporate representatives in Chicago, and reviewed more than 25,000 pages of documents produced by Allstate.

Q. Did requesting a credit report in connection with this class action Settlement have a negative impact upon my credit score?

A. No, submitting your request form for a free credit report in connection with this lawsuit had no adverse impact upon your credit score because your request was classified as a soft inquiry, as opposed to a hard inquiry. A certain amount of hard inquiries can potentially have a negative impact upon an individual's credit score, but soft inquiries do not.