Auto insurance policies typically provide for insureds to be reimbursed for expenses they incur in assisting in the defense of a lawsuit against the insured that is being defended by the insurer. Some putative class actions have been brought on the theory that insurers fail to proactively determine whether these expenses are incurred and pay
Auto Insurance
Class Action on Use of Staff Counsel Dismissed By Indiana Federal District Court
About a year ago I noted on this blog the filing of a new putative class action in Indiana state court alleging that State Farm improperly failed to disclose to its insureds, in connection with the issuance of automobile policies, that State Farm may use staff counsel to defend them in lawsuits. (See my November…
Subrogation “Made Whole” Doctrine Class Action: Florida Federal Court Strikes Class Allegations
Last week, in my August 7, 2012 post, I reported on a new class action filed against AIG/Chartis involving the subrogation “made whole” doctrine. A recent Florida federal district court decision in a putative class action on this issue is significant because it struck the class allegations on the pleadings.
In Vandenbrink v. State …
Auto Insurance: Potential for Class Action Filings Regarding Collision Coverage Premiums
A recent article by Eric Lee on InsuranceNewsNet describes potential class action filings against auto insurers regarding premiums for collision coverage on the grounds that the premium for this coverage allegedly was not reduced as the vehicle depreciated. The article describes the founder of Auto Insurance Relief, which is apparently a California-based company, as…
Consumer Federation of America Report Regarding Use of Software in Adjusting Bodily Injury Claims
Last week there was significant media attention given to a report issued by the Consumer Federation of America regarding the use of software by insurers to adjust bodily injury claims, such as “Colossus,” typically under auto insurance policies. The report explains:
Over the past ten to fifteen years, the payment of bodily injury claims covered…
Auto Class Action on Preferred Repair Facilities and Non-OEM Parts: California Court of Appeal Upholds Insurer’s Application Form and Affirms Order Striking Class Allegations
Insurers writing auto policies in California seeking to keep repair costs down by encouraging their insureds to use preferred repair facilities, and encouraging the use of non-original equipment manufacturer (OEM) parts, now have a potential roadmap to follow from the California Court of Appeal.
In Ortega v. Topa Insurance Company, No. B228889, 2012 Cal.
New Auto Insurance Class Actions Against GEICO and Progressive Focus on State Law Compliance Issues
After Wal-Mart v. Dukes, plaintiffs’ lawyers tend to file more narrowly-tailored, single state class actions, often focusing on insurers’ compliance with state statutes or regulations. Recent filings against GEICO and Progressive, two of the country’s largest auto insurers, are good examples of this trend:
- Davis v GEICO Casualty Company.pdf, Case No. 2012CA005024 (Florida
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Recent Property & Casualty Class Action Decisions – Part Two
Here is the second installment of my summaries of significant recent P&C class action decisions:
- Seabron v. American Family Mutual Insurance Company, 2012 U.S. Dist. LEXIS 41451 (D. Colo. Mar. 27, 2012): This is a relatively rare written opinion on several discovery issues that often arise in insurance class actions. The court resolves a
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Recent Property & Casualty Class Action Decisions – Part One
There have been an unusually large number of significant decisions in insurance class actions over the last couple of weeks. I will not be able to discuss all of them in detail but thought you would like to have shorter summaries of them. Here is the first installment regarding recent P&C class action decisions:
- Folks
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Antitheft Device Discounts on Auto Policies: Pennsylvania Federal District Court Grants Summary Judgment in favor of Insureds in Putative Class Action
Last week a Pennsylvania federal judge ruled that auto insurers must make determinations about which vehicles have passive antitheft devices qualifying for a premium discount under Pennsylvania law, and give discounts for such devices automatically if the vehicle has such a device, regardless of whether the insured asks for a discount. All insurers writing auto…