“We are grateful that there are investigators whose jobs are to protect consumers from financial harm. Consumer protection investigators have the resources that average consumers do not. Often consumers feel vulnerable and unable to resolve situations such as this, and it’s good to know there are agencies they can turn to.”
CSLEA President Alan Barcelona
VENTURA– On October 25, 2023, the Ventura County District Attorney’s Office announced that Alliance United Insurance Company, which provides auto and casualty insurance services to consumers throughout California, settled a multi-jurisdictional civil lawsuit alleging that the company engaged in unfair business practices in violation of Business and Professions Code 17200.
According to the DA’s office, Alliance United specializes in offering non-standard, high-risk auto policies. Many of its clients are from lower income and/or under-represented communities. Pursuant to a judgment that was signed October 24, 2023, in the Los Angeles County Superior Court, Alliance was ordered to pay $1.1 million for allegedly failing to:
- efficiently investigate auto accident claims,
- respond promptly to consumers making auto insurance claims,
- make its coverage decisions within the legal timeframe as required by law.
“Alliance United Insurance Company let its customers down by failing to act upon and process claims in a timely manner,” said District Attorney Erik Nasarenko. “Our office is committed to holding these insurance companies accountable to ensure timely support, coverage, and fairness for those impacted by auto accidents.”
This settlement is the result of joint investigation and prosecution by the
- Ventura County District Attorney’s Office Consumer and Environmental Protection Unit,
- Los Angeles District Attorney’s Office Consumer Protection Division,
- and investigators from the California Department of Insurance.
The settlement amount includes investigative cost recovery and civil penalties to both District Attorney’s Offices. Although Alliance does not admit to any wrongdoing, it has agreed to engage in additional compliance measures with improved training for employees handling claims, increased self-audits for a period of four years, and a revision to processing complaints from brokers, the California Department of Insurance, and the public through various social media platforms.
