Insurance Provider Addresses Claims Investigation Issues in Settlement
By Dolores Quintana
District Attorney George Gascón has announced that Alliance United Insurance, a Los Angeles-based company providing auto and casualty insurance services statewide, will pay $1.1 million for allegedly failing to investigate auto accident claims as required by law.
Gascón emphasized that while insurance companies swiftly collect premiums, they must also efficiently investigate and process claims. Timely investigations are a legal and ethical duty, as delayed or inadequate investigations can have serious consequences for accident victims.
The Los Angeles County District Attorney’s Office (LADA) led the investigation and partnered with the Ventura County District Attorney’s Office. Alliance United, with offices in both counties, specializes in non-standard, high-risk auto policies, serving many clients from lower-income and under-represented communities.
The civil lawsuit accused Alliance United of frequently delaying responses to consumers’ auto insurance claims and not making coverage decisions within the legal timeframe. On October 23, Los Angeles County Superior Court Judge Armen Tamzarian approved the stipulated final judgment, which includes penalties and investigation costs.
While Alliance United did not admit wrongdoing, it cooperated with prosecutors and implemented corrective measures, including enhanced training for employees handling claims. The case was jointly handled by the Consumer Protection Divisions of both district attorneys’ offices, with assistance from the California Department of Insurance investigators.
