USAA class action lawsuit overview:
- Who: The United Services Automobile Association (USAA) is facing a class action lawsuit related to its handling of automobile personal injury protection and medical payment claims.
- Why: USAA is accused of delegating its claims to a third party company’s computer program that improperly reduces or denies USAA claims.
- Where: USAA’s counsel petitioned to have the case removed from Clark County, Washington, court and moved to the U.S. District Court for the Western District of Washington at Tacoma.
The United Services Automobile Association (USAA) is facing a class action lawsuit claiming that it uses a third party company that improperly reduces or denies claims related to automobile personal injury protection and medical payments.
USAA is accused of using third-party Auto Injury Solutions as part of a multi-faceted USAA claims scheme to implement a computer program called Medical Bill Audit (MBA) for denying 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 lawsuit says.
USAA customers claim insurance adjusters never look at denied claims
The USAA lawsuit plaintiffs Caryn Jennings and Tricia Harder are both Washington residents who had automobile accidents and are part of a class stating that USAA did not investigate their claims and instead used Auto Injury Solutions’ computer model to deny or reduce claims.
USAA has used the program to avoid having a USAA insurance adjustor review the claim or conduct an investigation into the validity of those claims, the USAA class action says.
A September class action lawsuit claims USAA did not properly protect the personal information of clients, resulting in the USAA data breach.
Have you had a personal injury or medical claim denied by USAA? Let us know in the comments.
The defendants are represented by Kimberly A. Reppart and Kara A. Tredway of Forsberg and Umlauf P.S.
The plaintiffs are represented by Jason T. Dennett and Cecily C. Jordan of Tousley Brain Stephens PLLC along with Franklin D. Azar, Dezarae LaCrue, Michael D. Murphy, Timothy L. Foster and Brian Hanlin of Franklin D. Azar and Associates P.C.
The USAA class action lawsuit is Jennings, et al. v. USAA Casualty Insurance Company, et al., Case No. 3:23-cv-06171, in the U.S. District Court for the Western District of Washington at Tacoma.
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135 thoughts onUSAA class action alleges company uses third party to unfairly reject, underpay claims
Please add me the third party company only approve $6k damages on a $15k bill and I was denied rental car on a premium I pay to receive rental car authorization for car repairs.
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Mercury insurance is doing this to me right now!!! Help!!!
Please add me. Geico underpaid me as well and stated I would have to submit a receipt and get work done “first” to prove the cost was higher. As a result I was never able to get the repair done. julielshepard@yahoo.com
The company hired by USAA sent a 3rd party adjuster who did a thorough inspection and wrote a quote. They only approved less than a third of the estimate.
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Please add me I have had USAA for 14 years
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I was denied a claim by USAA to replace my roof. They only paid for patches to be replaced. Then canceled my policy. Later reinstated the policy for 1 year and told me that I would have to replace my roof at my expense before they would insure my entire roof. For one year, they house is insured except for the roof. I has been with USAA for approximately 15-20 years. That’s how we veterans are being treated.
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I was denied a claim by USAA to replace my roof. They only paid for patches to be replaced. Then canceled my policy. Later reinstated the policy for 1 year and told me that I would have to replace my roof at my expense before they would insure my entire roof. For one year, they house is insured except for the roof. I has been with USAA for approximately 15-20 years. That’s how we veterans are being treated.
I was involved in a head on collision in a parking lot. Adjuster said pay the deductible and a refund will be issued. Well I ended up getting denied and medical bills were sent to collections.