CA-Based Insurance Company to Pay $1.1M to Settle Delayed Claims Investigations

Alliance-United-Insurance-CA-settlement

Alliance United Insurance faced a civil suit in Los Angeles and Ventura counties, alleging it frequently failed to respond promptly to claims.

Alliance United Insurance, a Los Angeles-based auto and casualty insurance provider, agreed to a $1.1 million settlement following allegations of inadequate and delayed investigations into auto accident claims, Los Angeles County District Attorney George Gascón announced.

While Alliance United did not admit wrongdoing, the company cooperated with prosecutors and is now taking steps to correct the identified violations, including implementing improved training for employees responsible for handling claims.

The settlement stems from a civil lawsuit, led by the Los Angeles District Attorney's Office with help from the Ventura County District Attorney's Office, as it pertained to Alliance United's operations in both counties.

Alliance United specializes in providing non-standard, high-risk auto policies, catering to a clientele that often includes individuals from lower-income and underrepresented communities. The civil lawsuit alleged Alliance United frequently failed to respond promptly to consumers making auto insurance claims and make its coverage decisions within the legal timeframe. 

Los Angeles County Superior Court Judge Armen Tamzarian signed the stipulated final judgment between prosecutors and Alliance United on Oct. 23. The settlement payment covers penalties and costs associated with the investigation.

The case was jointly handled by the Consumer Protection Divisions of both the Los Angeles District Attorney's Office and the Ventura County District Attorney's Office, with the support of investigators from the California Department of Insurance.

"Insurance companies are quick to collect premiums but also must be swift in investigating and processing claims," Gascón said. "Timely investigations are not just a courtesy; they are a legal and ethical duty. Delayed or inadequate investigations can have serious consequences, leaving victims without the support they need to recover from auto accidents."

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