|
PRINT
THIS PAGE | E-MAIL THIS PAGE
Saturday, February 22, 1997
Texans to get $7 million back
AUSTIN (AP) - More than 27,000 Texans are to receive nearly
$7.7 million in restitution from three auto insurance companies
in a settlement announced Friday.
The companies are making the payments to settle allegations
that they didn't refund deductibles paid by their customers when
required to do so by law, the attorney general's office said.
Attorney General Dan Morales identified the companies as Allstate
Insurance Co., GIECO and ANPAC Insurance Groups.
The settlement concerns cases in which consumers pay a deductible
in the process of filing an auto insurance claim.
Under state law, if a third party may be liable for paying
the insured's deductible, an insurance company has six months
to either file a lawsuit to recover the deductible or notify the
insured that he may file a suit to recover it.
If the insurance company fails to do either of those things
within six months, it must pay its insured customer the amount
of the deductible.
Morales said an investigation by his office showed that the
three companies weren't complying with the law and that the problem
is widespread.
"These insurance companies are not alone in their failure
to refund deductibles to their insureds," Morales said. "Our
previous settlements with State Farm and Farmers Insurance on
this same issue indicate that this is an industrywide problem."
The attorney general's office said about 20,000 Allstate customers
should receive $5.7 million in payments for claims made after
Sept. 1, 1991, plus a 10 percent liquidated interest payment.
GIECO is to refund about $1.7 million to 6,100 customers. ANPAC
will refund approximately $225,000 to 847 customers.
As part of the settlements, the three companies admitted no
wrongdoing. Send
a Letter to the Editor about This Story | Start or Join A Discussion about This Story
Send the URL (Address) of This Story
to A Friend:
Copyright ©1997,
Abilene Reporter-News / Texnews / E.W. Scripps Publications
Send
the URL (Address) of This Story to A Friend:
|
