Geico, Humana, USAA face class actions as other insurance companies agree to settlements

Insurance class class action lawsuits, settlements overview: 

• Who: Consumers recently filed class action lawsuits against the United Services Automobile Association, Geico General Insurance and Humana. Allstate and Owners Insurance both recently agreed to class action settlements. 
• Why: The settlements and class action lawsuits involve denying care to elderly patients and underpaying on insurance claims. 
• Where: The class action lawsuits and settlements affect a variety of consumers across the United States. 

There have been several class action lawsuits and settlement agreements involving insurance companies lately, with allegations of underpaid claims and denied care to elderly patients with Medicare Advantage plans. 

USAA wrongly denies, underpays claims, class action says

A pair of Washington residents filed a class action lawsuit against the United Services Automobile Association (USAA) in December, arguing the insurer used a third-party company to improperly reduce or deny claims related to automobile personal injury protection and medical payment. 

The insurer is accused of using a computer program called Medical Bill Audit (MBA) that is operated by third-party company Auto Injury Solutions as part of an alleged scheme to wrongly deny claims. 

“The MBA process is designed, largely through automated computer processes, to categorically and systematically, without human input, eliminate, abate and/or reduce the amount USAA pays for its insured’s health care expenses based upon its treatment of various codes,” the USAA class action states.

Geico fails to pay vehicle lessees true value after total loss accidents, class action says

A consumer filed a class action lawsuit against Geico General Insurance Co. last month, arguing the insurance company fails to update its vehicle estimates so they will determine the actual cash value of a leased vehicle involved in a total-loss accident. 

The consumer argues Geico should update the vehicle estimates for a leased vehicle so it reflects the increased value of a used vehicle in the current market. 

“In recent years, the automotive industry has experienced a trend: used car prices have not only remained stable, but in some cases, steadily risen,” the Geico class action states. “As used car prices have risen, the residual value of leased vehicles — the estimated value of the car at the end of the lease term — has also increased.” 

The consumer argues Geico should pay individuals who are leasing vehicles involved in a total loss accident the total value of what their vehicle would be at the end of its lease. 

Humana accused of using AI to wrongfully deny medical care to elderly patients 

A pair of individuals filed a class action lawsuit against Humana last month, arguing the insurance company uses an AI model to wrongfully deny care to elderly patients whose human doctor found medical care was necessary under its Medicare Advantage plans. 

Humana is allegedly aware its AI model, nH Predict, makes highly inaccurate predictions that aren’t based on patients’ medical needs but uses the model to deny medical coverage anyway, the Humana class action alleges. 

“Despite the high rate of wrongful denials, Humana continues to systemically use this flawed AI Model to deny claims,” the Humana class action states. 

Allstate to pay at $2.2M to end claims it underpaid uninsured motorist claims

In November, Allstate agreed to pay at least $2.2 million to end claims the insurance company failed to fully pay auto insurance policyholders in New Mexico following incidents that occurred with an uninsured motorist.

The settlement was made to benefit a New Mexico class of Allstate policyholders covered under an uninsured/underinsured motorist policy that was initially issued or renewed between Jan. 1, 2004, and July 11, 2022, and who made a claim under the policy’s coverage where benefits were reduced or denied. 

Allstate had been accused of violating New Mexico law by allegedly basing coverage limits off a third party that reduced uninsured motorist coverage. 

Vehicle owners who want to make a claim to join the class action settlement must submit a valid claim form by Feb. 5, 2024. 

Owners Insurance settles claims it failed to include taxes with total loss payments

In December, Owners Insurance agreed to a class action settlement resolving claims the mutual insurance company violated Georgia law by allegedly failing to include taxes with its total loss payments. 

The settlement benefits a class of Georgia residents with an Owners Insurance auto policy and who submitted a claim that resulted in a total loss between Jan. 1, 2020, and Aug. 2, 2022, and who then did not receive at least 6.6% of the actual cash value for the total loss vehicle for title ad valorem tax. 

Vehicle owners who want to make a claim to join the class action settlement must submit a valid claim form by Feb. 6, 2024. 

Have you been affected by a recent class action lawsuit or settlement involving an insurance company? Let us know in the comments.

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