Monday, September 26th, 2022

CSAA faces lawsuit over claims it overcharged auto insurance coverage policyholders $150 million


In accordance with the lawsuit, the variety of miles pushed by motorists sharply dropped throughout the onset of the pandemic in March 2020. In the identical 12 months, CSAA solely paid about 48.2 cents in claims for each greenback in premiums it collected from its auto policyholders. The grievance claims that the insurer excessively charged prospects by not less than $250 million between March 2020 and June 2021, and that CSAA repaid solely about $96 million of that complete.

Due to the overcharging, CSAA’s earnings on its auto insurance coverage enterprise jumped 665% in 2020, the grievance mentioned.

Shopper Watchdog gathered statements from authorized professionals concerned within the lawsuit.

“The California Insurance coverage Commissioner singled out CSAA as one among three corporations that almost all flagrantly violated its orders to refund extreme premiums. Our pre-filing investigation reveals that his identification of CSAA was totally justified,” mentioned Jay Angoff, a associate at Mehri and Skalet, one of many three regulation companies representing CSAA policyholders within the lawsuit.

Learn extra: Allstate, Mercury, CSAA ordered to reimburse extra auto premiums

“So many Californians suffered enormously from COVID and its financial fallout, and large insurance coverage corporations like CSAA shouldn’t be allowed to profiteer throughout this historic pandemic,” added David Borgen, an legal professional with Goldstein, Borgen, Dardarian & Ho.

“California regulation requires insurance coverage corporations to keep up truthful charges always,” commented Harvey Rosenfield, a lawyer with Shopper Watchdog and the writer of Proposition 103. “Because of its pandemic profiteering, CSAA reaped an astounding monetary windfall—cash that belongs to its prospects.”

 



Supply hyperlink

Leave a Reply

Your email address will not be published.