District Attorney announces $1.1 million settlement with insurance company that sold in low-income areas
Alliance United Insurance Co. will pay $1.1 million in a consumer protection settlement, District Attorney Erik Nasarenko announced last week.
The company specialises in offering non-standard, high-risk auto policies, with many of its customers coming from low-income areas, Nasarenko said in a news release.
The company was ordered to pay the money by a Los Angeles County court for allegedly failing to efficiently investigate auto accident claims, respond promptly to consumers making claims, and make coverage decisions within the time required by law.
The settlement follows a joint investigation and prosecution by the consumer protection units of the Ventura County and Los Angeles County District Attorney’s Offices and investigators from the state Department of Insurance. The settlement amount includes reimbursement of investigative costs and civil penalties to both District Attorney’s offices.
Alliance did not admit any wrongdoing, but has agreed to improve training for employees who handle claims, increase self-audits for four years, and review the handling of complaints from brokers, the state Department of Insurance, and the public through various social media platforms.
