Tag: insurance industry

Allstate Insurance Faces Defeat in Court Over Telemarketing Calls

Nordstrom
Allstate Insurance - Telemarketers - Law - Defeat

In a consequential ruling that will undoubtedly reverberate through insurance and telemarketing industries, Allstate Insurance has been found in violation of the Telephone Consumer Protection Act (TCPA) in a complex network of agencies and subagencies that ultimately led to unsolicited marketing calls being made to consumers. The case, titled Hossfield v. Allstate, 2024 WL 1328651, was decided on March 28, 2024, by the Northern District of Illinois court. Overview of the Judgment With an intricate chain of lead generation and marketing agencies involved, Allstate faced accusations stemming from actions unwittingly…

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State Farm Registers $6.3 Billion Net Loss in Challenging 2023 Fiscal Year

H. Cutner
state farm insurance news

Despite attempts to improve results following a substantial $6.7 billion loss in 2022, State Farm, a leading insurance giant, ended 2023 with a $6.3 billion net loss. The company cites a surge in catastrophe claims as a significant factor contributing to their financial results. Elevated Claims and Unfavorable Results The Financial Climate State Farm’s financial report for the year reflects a tumultuous period, as total revenue reached $104.2 billion, yet it was not enough to prevent a net loss. The company’s combined ratio, a key measure of underwriting profitability, rose…

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Illinois Residents Face New Wave of Insurance Rate Hikes

G. Turner
Illinois auto insurance rates

Major Rate Hikes by Allstate and State Farm: A Financial Challenge for Illinois Motorists and Homeowners Illinois motorists are facing a financial squall as insurance giants Allstate and State Farm implement major rate hikes, signaling a challenging period ahead for policyholders. Allstate is poised to shock the market with an abrupt 12.7% increase in homeowners’ premiums this week, and State Farm follows closely, scheduling a 12.3% climb in May, as disclosed by the Chicago Tribune. However, the strain doesn’t stop there — a staggering average rise of 28% in auto…

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Senate Report Reveals Tax Loopholes in Special Life Insurance Plans

Angela Linders
life insurance

In an era when tax strategies of the rich and powerful are under increasing scrutiny, a recent Senate report featured in The Washington Post, has shone a stark light on the life insurance market — not for its widely acknowledged benefits, but for its exploitation as a tax shelter by America’s wealthiest. The traditional purposes of life insurance, including estate planning and providing non-taxable benefits to heirs, are well-understood. Yet, as the Senate Finance Committee revealed, a niche offering known as Private Placement Life Insurance (PPLI) propels these advantages into…

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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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