Illinois GEICO Policyholders Don't Want Their Autos Repaired With Non-OEM Parts |
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The class has been certified in a class action filed against Government Employees Insurance Company (GEICO) on behalf of Illinois auto insurance policyholders who allege that the company forces them to use lower-quality parts to fix their vehicles in violation of their policies and state insurance laws. The action seeks unspecified compensatory damages for the reduced value of these repaired autos.
The action alleges that aftermarket parts do not restore a vehicle to its original state, so that policyholders are left with cars that are not as valuable as they would be if they were repaired using parts from the original manufacturer. The action further alleges that the auto insurance industry created the Certified Auto Parts Association in 1988 as a self-serving front to sign off on the quality of aftermarket parts.
The first aftermarket parts case tried in Illinois was a class-action suit in Williamson County. In October 1999, a jury delivered a verdict of almost $1.2 billion against State Farm. That case is now on appeal before the Illinois Supreme Court. The Illinois 5th District Court of Appeals upheld the verdict but reduced it from $1.2 billion to $1.05 billion. The action against State Farm represented 4.7 million policyholders nationwide. With about 30,000 members, the class in the action against GEICO is much smaller than the group affected by the State Farm decision.
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Other Insurance Cases of Interest
A federal court in Louisiana has certified the class in a class action filed against Imperial Adjustment Company and Equifax Credit Information Services alleging that Equifax gave Imperial unrestricted access to the personal credit reports of approximately 150 class members. A class action lawsuit has been filed in the District Court of South Carolina against Tenet South Carolina, Inc., DBA Hilton Head Regional Medical Center. The case involves violations of contract law. No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. A nationwide class action has been filed against insurance companies Marsh & McLennan Companies, Inc., Aon Corporation and its affiliates, and the Willis Group, on behalf of all persons who directly or indirectly engaged the defendants’ insurance brokerage services between August 26, 1994, and the present. The action alleges that the companies have conspired to fraudulently conceal that they have entered into placement service agreements with third-party insurance companies which pay them additional fees based on such factors as profitability, growth, and the volume of insurance the defendants place with the participating insurers, in violation of the federal Racketeer Influenced and Corrupt Organizations Act. Madison County, Illinois Circuit Judge Daniel Stack reduced a once-heavy national class action suit against American Family Mutual Insurance even further from 17 states down to a trim 12.
The lawsuit was filed by Manual Hernandez, who claimed in 2000 that American Family improperly used computer software to reduce payments on medical claims from auto accidents. The lawsuit was certified as a class action in 2002 by Judge Stack.
On 12/13/04, CIGNA HealthCare announced that it has reached a settlement in lawsuits brought on behalf of a nationwide class of specialty health care providers and certain state and national associations. The agreement must be approved by the United States District Court in Miami. A class action has been filed against Washington Hospital Center for failing to provide a reasonable volume of free or reduced priced medical care to poor, uninsured patients and from conditioning emergency treatment on a patient's payment or ability to pay agreement.
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