Insurer to pay however denies wrongdoing
Progressive Insurance coverage has agreed to a $48 million settlement to resolve Volino et al v. Progressive Casualty Insurance coverage Co et al, a category motion lawsuit alleging that the insurer systematically undervalued claims made by New York drivers whose automobiles have been totaled.
Policyholders contended that the corporate employed third-party software program that undervalued the pre-accident gross sales value of their automobiles.
It was alleged that the software program included changes that exaggerated the affect of negotiation techniques, which they argued had change into outdated because of the prevalence of on-line pricing.
The supposed manipulation led to lowered payout quantities, which the policyholders mentioned was in violation not solely of Progressive’s personal insurance policies but additionally of the overall enterprise legislation in New York.
Reuters reported that the preliminary settlement – which applies to policyholders in New York from July 28, 2015 to the current – was filed on Monday night in Manhattan federal courtroom and awaits approval from US District Choose Lorna Schofield.
Though Progressive agreed to settle, the Ohio-headquarted firm denied any wrongdoing. It was famous that requests for remark from the insurer and its authorized representatives went unanswered on Tuesday.
The large settlement comes on the heels of an earlier, unrelated settlement with Aric Hutchinson, whose spouse was killed on their marriage ceremony day after being hit by a supposedly drunk driver named Jamie Komoroski.
The Put up and Courier reported that the widower’s settlement with Progressive amounted to $75,000, whereas Fooly Seashore golf equipment The Crab Shack and The Drop-In Bar & Deli are shelling out $640,000 and $320,000, respectively.
Snapper Jacks additionally agreed to a $320,000 settlement, whereas Enterprise Hire-A-Automobile is paying Hutchinson $24,000.
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