Allianz Class Action Says Travel Insurance Policies Are Bogus

A class action lawsuit says Allianz and Jefferson Insurance Co. wrongly deny travel insurance claims and effectively sell bogus policies.

The Allainz class action lawsuit was filed by Sarah Alhassid, who recently amended her complaint against the two insurers.

In her amended complaints, she seeks to represent a Class of all consumers who purchased travel insurance from AGA Service Co. She says that AGA Service Co. does business under the brand names Allianz Global Assistance and Jefferson Insurance Co.

The AGA insurance claim denial class action lawsuit argues that the companies make a policy of wrongly denying travel insurance claims in an effort to maximize their own profits.

Alhassid’s lawyer told Law360 that “It is a business decision for [the companies] to deny a large percentage of claims, because they are betting that the purchasers of this travel insurance, when their claim is denied, will not go out and hire a lawyer to pursue the claims. In this case, they were wrong.”

The Allianz class action lawsuit says that Alhassid purchased travel insurance from Allianz for $21 for a flight from Miami International Airport to Las Vegas on Sept. 7, 2017.

Allegedly, the flight was canceled only four hours before it was scheduled to depart. Alhassid says that this cancelation was caused by an impending category 5 hurricane.

The travel insurance class action lawsuit asserts that Alhassid filed an insurance claim, but was denied. Allegedly, the denial letter said “travel insurance doesn’t cover everything. It’s designed to protect you when there’s a sudden, unexpected problem or event. Specifically excluded is any problem or event that could have been reasonably foreseen or expected when you purchased your plan.”

However, Alhassid argues that travelers purchase travel insurance to protect against things that are foreseeable, like a cancelation by an airline. The plaintiff says the company is aware that this is why travelers purchase trip insurance.

The Allianz class action lawsuit asserts that Alhassid was financially injured by Allianz because she could not get another flight and had to incur expenses to cover a hotel room, gasoline, food, and mileage on her car to drive to get out of the storm. This reportedly cost her around $6,500.

She seeks damages for herself and other people who were affected by AGA’s alleged conduct. She argues that many other travelers were similarly affected, as the company makes a policy of denying reasonable insurance claims.

The plaintiff alleges breach of contract, saying that Allianz denied her claim, and possibly many other claims, though the cancelation was one of the events covered in her policy. She also says that the company may have violated state law that requires insurers to make a “good faith attempt” to settle claims with policyholders when they have an obligation to do so.

Alhassid is represented by Reuven Herssein and Maury Udell of Herssein Law Group.

The Allianz Travel Insurance Claim Denial Class Action Lawsuit is Sarah Alhassid v. AGA Service Co., et al., Case No. 2018-016145-CC-05, in the County Court for Miami-Dade County, Florida.

Read More Lawsuit & Settlement News:

New Apple MacBook Class Action Alleges Butterfly Keyboard Defect

Baby Powder Lawsuit Results in $12 Million for California Victim

Massage Envy Members Seek Approval of $10M Settlement

Obstetrician, Hospital to Pay $2.75 Million Birth Injury Settlement