Allstate Insurance Dragging Their Feet on Paying a Claim

The policy and terms clause means you have paid the premiums and were covered under the terms of the policy. One way insurance companies make money is by keeping yours. The delay tactic is to get you past the statute of limitations so you can't sue. You need to talk with a lawyer who handles insurance claims right away.
Good Luck

You need to gather up your documentation, including a copy of all emails or letters to and from Allstate and a copy of your policy and meet with an experienced attorney right away. Statutes of limitation can be limited by contract under certain circumstances, but your insurance company also has an obligation to treat you in good faith, and if it fails to do so, it is possible the insurance company could be liable for attorneys' fees and other damages. It is not possible to evaluate your situation based on the limited information provided. Good luck, and I suggest you act quickly on this.

The following should not be taken as legal advice; it is only general educational information.

Insurance companies are obligated to pay covered claims as long as the policy holder abides by the terms of the policy. Insurance companies are also required to comply with the policy. There are quite strict requirements on how claims must be handled under the Washington Administrative Code requirements. See WAC 248-30-330 et al. The insurance company must follow these. There is also the Insurance Fair Conduct Act, RCW 48.30.015, a recent change in the law that gives policyholders some powerful remedies when it applies. There are some other laws which can apply as well. The law in Washington can be very helpful to the policy holder.

With the limited facts you set out it is not possible to say what the outcome would be in your case. I would strongly recommend that you consult a lawyer experienced with this type of case very soon.