Tag: consumer rights

State Farm Faces Setback as Class Action Lawsuit Progresses in Federal Court

John B.
State Farm Lawsuit Advances

State Farm Lawsuit Advances After Motion to Dismiss Denied In a significant legal development, U.S. District Judge Virginia Kendall has denied State Farm’s motion to dismiss a class action lawsuit, allowing the case to proceed in the U.S. District Court for the Northern District of Illinois. The lawsuit accuses the insurance giant of systematically undervaluing and underpaying policyholders for totaled vehicles, raising concerns among policyholders and industry analysts alike. Challenges to State Farm’s Valuation Methods and Practices The lawsuit, originally filed in March 2022, challenges State Farm’s vehicle valuation methods,…

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Maryland Insurance Professionals Face Stricter Standards

H. Cutner
Maryland Insurance Professionals Face Stricter Standards

Protecting Maryland Consumers: A Closer Look at Stricter Penalties Starting October 1, consumers in Maryland will witness the implementation of more stringent penalties for unauthorized insurance activities. These legislative changes, introduced by the Maryland Insurance Administration, aims to protect consumers from fraudulent practices while ensuring that insurance professionals uphold the highest standards. Unauthorized Insurer Fines Soar: The fines for unauthorized insurers have substantially increased, with penalties rising from $50,000 to a maximum of $125,000. Higher Penalties for Dishonest Practices: Insurance producers and public adjusters indulging in dishonest or incompetent practices…

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Lawsuit Alleges USAA Uses Computer System to Arbitrarily Deny, Reduce Claims

Logan B.
USAA Insurance News

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…

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