Live Insurance News

Legal Chaos or Just Business? Georgia Insurance Company Pushes Back on $22 Million Payout

April 4, 2025April 4, 2025 John Bowers

Georgia Insurance Carrier Refuses to Pay $22 Million Verdict A High-Stakes Collision That’s Far From Over Imagine you’re sitting on a hefty $22 million verdict awarded by a jury. Now imagine the insurer responsible for covering that claim refuses to pay more than their policy limit of $1 million. Welcome to the legal aftermath of a 2021 collision in DeKalb County, Georgia, where a truck accident left the jury awarding the multimillion-dollar judgment. Yet, the insurer, Knight Specialty Insurance Co., has drawn a line, capping their liability at the policy…

Why 99% of Term Life Policies Never Pay Out And What Farmers’ Lawsuit Tells Us

March 25, 2025March 26, 2025 Tate Ellison

Consumer Protection in Focus: The Farmers Life Insurance Lawsuit A high-stakes legal battle is brewing in California as Farmers New World Life Insurance Company faces allegations of overcharging policyholders and improperly lapsing policies. The class action lawsuit, filed on March 18, 2025, in California Superior Court for Los Angeles County, accuses Farmers of engaging in predatory practices that left many policyholders vulnerable. While the case is still in its preliminary stages, it has already sparked critical discussions about consumer rights and corporate accountability in the insurance industry. Understanding the Allegations…

Allstate Bonus Plans in the Spotlight Over Storm Claim Rejections

March 20, 2025March 19, 2025 Tate Ellison

Court Orders Transparency in Storm Claim Denials A federal court has handed down a milestone decision requiring Allstate Insurance to disclose key internal documents related to its handling of storm damage claims. The ruling, tied to a lawsuit filed in Louisiana, sheds light on the often opaque processes surrounding insurance claims. The plaintiff, Reed Chenevert, accused Allstate of arbitrarily denying his roof damage claim after a storm, citing bad faith and breach of contract. Central to the dispute is whether Allstate’s internal policies, including incentive plans for adjusters and managers,…

How a Policyholder Took on USAA in Court and Won Big

March 19, 2025March 19, 2025 Logan B.

A Shocking Decision: $100 Million in Punitive Damages, $14 Million in Compensatory Damages Insurance giant USAA has landed in the spotlight after a Nevada jury handed down a monumental $114 million verdict in a bad faith lawsuit. The award, which includes $100 million in punitive damages and $14 million in compensatory damages, arose from its handling of a claim for policyholder Timothy Kuhn following a car accident in 2018. The jury’s decision underscores a growing tension between insurers’ claims-handling practices and their legal obligations to their customers, raising questions about…

California Health Insurance Law SB 1120 Takes a Stand Against AI-Driven Health Insurance Denials

January 11, 2025January 10, 2025 Angela Linders

California Enacts SB 1120 to Rein in AI-Powered Health Insurance Decisions California has taken a groundbreaking step in regulating the role of artificial intelligence (AI) in health insurance decision-making. Senate Bill 1120 (SB 1120), also known as the “Physicians Make Decisions Act,” prohibits health insurers from denying, delaying, or altering claims solely based on AI algorithms. Signed into law by Governor Gavin Newsom, this legislation ensures human oversight in healthcare coverage decisions, addressing mounting public concerns about fairness and accuracy in the use of AI technologies. Effective as of January…

Major Decision by Florida Court of Appeals Shakes Up Insurance Landscape

January 9, 2025January 8, 2025 H. Cutner

Florida Court Ruling Redefines Assignment of Benefits (AOB) and Its Impact on Homeowners Insurance A recent ruling by a Florida court of appeals has established that a “direction to pay” (DTP) by a policyholder does not equate to an “assignment of benefits” (AOB). This decision serves as a significant milestone reinforcing the legislative reform introduced through Senate Bill 2-A in 2023. The reform prohibits insurance policy benefits issued after January 1, 2023, from being assigned to third parties. The objective of Senate Bill 2-A is to curb the extensive litigation…

Understanding the Challenges of Property Insurance Claims Denials in Florida

December 30, 2023 Guest Author

Understanding the Challenges of Property Insurance Claims Denials in Florida The landscape of property insurance in Florida is a complex and often challenging arena for homeowners. In recent years, the state has seen a significant uptick in litigation related to property insurance claims, particularly denials and underpayments. This post aims to shed light on this pressing issue, offering insights and guidance to those navigating the often turbulent waters of property insurance claims in Florida. 1. The Startling Statistics of Insurance Claims in Florida A critical statistic that sheds light on…