In recent developments, a class-action lawsuit is being prepared against State Farm Insurance, challenging the insurer’s updated and ambiguous water damage policy language. The policy’s vague terminology maybe the reason to an alarming denial rate of water damage claims among homeowners, raising significant concerns about the fairness and transparency of claim assessments. Rising Concerns Among State Farm Policyholders Homeowners across California have reported a surge in denied water damage claims since State Farm updated its homeowners’ policy in 2019. According to David Melzer, a public adjuster who advocates for homeowners,…
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Lawsuit Alleges USAA Uses Computer System to Arbitrarily Deny, Reduce Claims
In a legal case currently gaining attention, USAA is accused of utilizing a computer program to indiscriminately deny or lessen claims for personal injury protection and medical payments. This system, provided by CCC’s Auto Injury Solutions, is at the heart of numerous lawsuits that the insurance giant has faced in recent years. Allegations of Systematic Denials The class-action lawsuit, which emerged from Washington Superior Court for Clark County, suggests that USAA’s reliance on Auto Injury Solutions’ (AIS) computerized system is to the detriment of policyholder claims following vehicle accidents. San…
Read MoreCar Insurance 101: Watch Out for These Low Ball Tactics
Auto insurance companies are well-known for calculating their approach to settling accident claims. They typically know beforehand when an injured claimant is going to call well before it happens, and many times they record all incoming phone calls as company policy. Why? The primary reason is that there could be something said in an initial phone conversation with a claimant that can help in defending the claim if there is a denial. Every step of the process has been thought out by the company before anyone even attempts to file…
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