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Allstate gets into the Repair business
Allstate Insurance Co. accomplished an industry first with its May 2001 purchase of Sterling Collision Centers, a chain of repair shops in seven states which the insurer hopes will be its customers first choice for repairs.
Allstate says Sterling will offer cheaper, more expedient car repairs for Allstate customers. Controlling the cost of auto repair, the company says, will help control the cost of insurance for Allstate customers. Many insurers keep costs down with preferred repair providers, but Allstate's purchase makes it an industry maverick.
"I don't know that other insurance company currently owns or is contemplating owning an auto body repair network," says Joe Annotti of the National Association of Independent Insurers (NAII), a property-casualty insurers' trade association. "If Allstate is successful, other companies will be observant. I think Allstate wants to control the quality and the cost of repairs, and hopefully that passes on to consumers as lower premiums," Annotti says.
Six racketeering suits are accusing insurance companies
of conspiring with an independent valuation service to underestimate the value of damaged vehicles.
States Take Action Against Allstate Insurance!
Jury Awards $456 Million In Class Action Verdict Against State Farm
States With Allstate Investigations
The Attorneys General of six states and the Departments of Insurance for Hawaii, Washington and Louisiana currently have open investigations into Allstate Insurance Company.
Maryland Attorney General
www.oag.state.md.us
Mississippi Attorney General
www.ago.state.ms.us
New York Attorney General
www.oag.state.ny.us
North Carolina Attorney General
www.jus.state.nc.us
Pennsylvania Attorney General
www.attorneygeneral.gov
Tennessee Attorney General
wwww.attorneygeneral.state.tn.us
Hawaii Dept. of Commerce and Consumer Affairs, Div. of Insurance
www.state.hi.us/dcca/ins
Washington State Insurance Commissioner
www.insurance.wa.gov
Louisiana Dept. of Insurance
www.ldi.state.la.us
Utah Court Reinstates $145M Jury Award Against State Farm for Underpaying Claims, Cheating Customers
SALT LAKE CITY –– The Utah Supreme Court reinstated a $145 million jury award against State Farm for underpaying insurance claims, cheating customers and destroying crucial documents...
State Farm to Pay Customers $456M
MARION, Ill. (AP) -- A jury today ordered the nation's largest auto insurer to pay $456 million for allegedly cheating customers by ordering body shops to use substandard repair parts...
Illinois Appellate Court Affirms State Farm Aftermarket Part Decision
Last week, an Illinois state Appellate Court upheld most of a lower court's verdict in a nationwide class-action lawsuit against State Farm Mutual Automobile Insurance Co. The court, in its affirmation of the trial court's decision, ruled that State Farm acted with "calculated deception of its policyholders" in supplying them with auto-body parts that critics claimed were substandard.
The court reduced the $1.2 billion award by $130 million because of a technical error in the calculation of the damages. According to an Associated Press report, a State Farm spokesperson said the company is disappointed in the verdict and will appeal it to the Illinois Supreme Court.
State Farm Settles Texas Betterment Suit for $3.1 Million
State Farm Settles Texas Betterment Suit for $3.1 Million
Nov. 3, 2000 9:55 a.m. CST
A lawsuit filed against State Farm by Texas Attorney General John Cornyn was settled late Thursday with the insurer agreeing to pay $3.1 million to 30,000 Texas policyholders for allegedly deducting money for repairs from the customers' claim payments. State Farm agreed that this settlement will not affect its insurance rates.
The company will also pay $175,000 in attorneys' fees and other expenses to the Attorney General's office. In February, Cornyn sued 16 insurance companies regarding their illegal betterment practices. Cornyn has already reached agreements with USAA, GEICO, Safeco and Liberty Mutual insurance companies to issue betterment refunds to their Texas policyholders.
The state maintains that the insurers deducted portions of policyholders' claims when replacing older parts with new ones, on grounds that the new parts made the vehicles more valuable. The USAA, Geico, Safeco and Liberty Mutual insurance companies have also agreed to give refunds to their Texas policyholders. Eleven cases are pending.
Safeco agreed in March to pay policyholders $132,000 plus $15,000 in attorneys' fees. The companies sued by Cornyn said owners of older vehicles weren't entitled to full payment because the repairs increased the value of the vehicle when newer, better parts were used. Also, the companies said they never promised to make customer vehicles more valuable than before repairs were made. A state appeals court ruled those policies illegal in 1998.
FCC PROPOSES $5,379,000 FINE AGAINST FAX.COM, INC.
FOR IMMEDIATE RELEASE
August 7, 2002
Washington, D.C. - Today the Federal Communications Commission (FCC) proposed to fine Fax.com, Inc. $5,379,000 for sending unsolicited advertisements, commonly known as ``junk faxes,'' in violation of the Telephone Consumer Protection Act (TCPA) and Commission rules. Today's action represents the largest fine ever proposed by the Commission for violations of the TCPA and marks the first forfeiture action by the FCC against a fax broadcaster.
DIRECTV and PRIMETV are settling a class action lawsuit for illegal fax activities.
DIRECTV Participating in Class Action Settlement Related to Fax Promotions
DIRECTV and PRIMETV are in the process of settling a class action lawsuit brought against them for illegal fax activities. Although the class action benefits for individuals are inconsequential (basically the same benefits as if they'd taken the DIRECTV fax up on its promotional offer), the attorney fees can range as high as $8.5 million!
Click on the link for more information including details on how to participate as a claimant.
Georgia Car Wash May Face $110M in Junk Fax Penalties
A three-judge panel reversed a trial court's decision not to certify as a class 73,500 recipients of unsolicited faxes from a metro Atlanta car wash.
The decision earlier this month clears the way for a case involving potential fines of up to $110 million. The defendant's attorney, Richard C. Foster of Hicks, Casey & Foster in Marietta, said he will appeal the decision to the Georgia Supreme Court.
State Farm - Salvage Vehicle Titles
State Farm failed to obtain salvage titles for certain vehicles which it took possession of after declaring them ‘total loss vehicles.’ Salvage vehicles are those that are damaged by collision or flooding, or which are stolen or unrecovered theft vehicles.
State Farm Insurance has agreed to compensate consumers who own vehicles that should have been titled as ‘salvage’ but were not.
Find out if State Farm ever took possession of your vehicle through a total loss auto insurance claim. Visit http://www.oag.state.tx.us/consumer/statefarm_lossinfo.shtml
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