A number of Progressive Choice Insurance Co. customers have brought an insurance fraud lawsuit against the company alleging that its exhausting and intrusive investigation process delays their claims for too long a time.
According to Law 360 (subscription required), the insurance fraud lawsuit claims that Progressive’s policies regarding theft or vandalism claims filed for automobile and motorcycle policies led to long investigations that aimed to pin fault on the claimant. In addition to probing for inconsistencies in the claims, the investigations also asked claimants to fill out almost 50 requests for private information that was completely unrelated to the claims (divorce court records from divorces, bills for personal and business expenses, etc.).
If the information was not gathered and filed within a certain time frame, usually about 10 days, to Progressive’s claims investigation attorney Teresa Starinieri after she requests it, than policyholders would often have to wait for months until they could start another examination. If the information was filed on time, claimants have to undergo an examination under oath that can last for up to four hours.
Furthermore, policyholders who had their claims denied by Progressive often received unclear reasons for its decision.
“The denial letter does not state clearly the reason for the claim denial,” the complaint. “Instead the letter defames the claimant by accusing him or her of insurance fraud.”
The lawsuit claims that Progressive’s investigation techniques and vague claim denials violate its duty of good faith and fair dealing, and the customers are charging it with defamation, invasion of privacy, and intentional interference.
If you or a loved one have been taken advantage of due to an insurance company’s unfair policies, contact Sokolove Law today for a free legal consultation regarding a consumer fraud lawsuit.