Court Rules in Insurance Lawsuit, Insurer Must Disclose Surcharges
A California court ruled Safeco Insurance Company must disclose previously unapproved surcharges the company charged its customers. Safeco charged its policyholders hundreds of dollars more for auto insurance in alleged violation of Proposition 103. The law prohibits insurance companies from charging customers if they did not previously possess insurance.
A Los Angeles Superior Court Judge ordered the company to furnish a list of policyholders who were levied these additional surcharges. The decision allowed policy holders to take part in litigation. The company appealed, and now, the California Court of Appeal in Los Angeles has backed the judgment. Harvey Rosenfield, the author of Proposition 103, called the decision an “important victory" for policyholders because the company knowingly broke the law and hid its lawbreaking from customers and state regulators."
For a policyholder, it may not be immediately obvious that he is being overcharged by the insurer. When an insurer's desire for profit at any cost causes a situation where a customer is charged and ends up paying more than is lawful, it is necessary he consult with an insurance attorney to protect his rights.
Insurance disputes are not only related to policy denials or delays. They can also occur when a policy holder is charged a higher premium than he was promised. Disputes can also arise due to missed or late payments by the policy holder or the amount of coverage provided after a claim has been made, compared to the coverage promised by the insurer. For a policyholder, it may seem like he has no chance of justice against a major insurer, but an insurance attorney can help explain and enforce consumer rights.
