California regulator settles with insurtech and underwriter over claims mishandling

The California Division of Insurance coverage has introduced that it has reached two settlement agreements with Go Maps and its insurance coverage underwriter, Topa Insurance coverage, following an investigation into quite a few complaints relating to mishandling of shopper claims for over two dozen drivers.

As per the phrases of the settlement, Go Maps has consented to give up its insurance coverage license, pay a tremendous of $150,000, reimburse prices amounting to $50,000, and furnish the division with all vital data to make sure compliance with statutory necessities regarding present policyholders.

Topa, then again, acquired a tremendous of $2,108,000 and dedicated to sustaining everlasting entry to all insurance policies dealt with by future basic brokers, certifying the suitable licensure of all basic brokers and related entities, and refraining from in search of cash from customers who might have been undercharged because of ranking errors within the Go Maps/Topa program.

Violations of Go Maps and Topa

Go Maps, functioning as an insurtech, utilized an app-based advertising platform to conduct its insurance coverage enterprise for Topa. It is important for insurtech firms and the insurance coverage firms using them for advertising and managing their merchandise to stick to California’s shopper safety legal guidelines, sustaining licensed and educated people to make sure correct insurance coverage transactions inside the state.

In 2019, Go Maps partnered with Topa to deal with all features vital for the sale, service, administration, and claims dealing with of Topa’s non-public passenger car insurance policies offered to the general public by way of the Go Maps app. At its peak, the Go Maps/Topa program boasted over 10,000 California clients, constituting nearly all of its roughly 12,000 insurance policies nationwide.

In June 2022, the California Division of Insurance coverage acted towards Go Maps and Topa to safeguard the general public from additional hurt ensuing from repeated violations of assorted shopper safety legal guidelines regarding insurance coverage claims.

The failure of Go Maps and Topa to stick to California’s shopper safety guidelines imposed monetary burdens on drivers, compelling them to cowl rental automobile bills and different prices whereas their insurance coverage claims have been delayed. Amongst varied violations, Go Maps and/or Topa:

• Uncared for to pay claims inside 30 days put up dedication of protection or settlement
• Did not acknowledge claims, present vital varieties or directions, or provoke investigations inside the statutory 15-day requirement, surpassing the authorized 15-day requirement by over eight days on common
• Didn’t reply to customers’ inquiries about their claims inside 15 days, exceeding the authorized 15-day requirement by a mean of greater than 11 days
• Didn’t approve or deny claims inside 40 days, surpassing the authorized 40-day deadline by a mean of greater than 25 days
• Employed an unlicensed insurance coverage adjusting agency for claims adjustment

“These settlements characterize an essential victory for California customers as we maintain all firms accountable and be certain that they adjust to our sturdy shopper safety legal guidelines,” Insurance coverage Commissioner Ricardo Lara stated. “Whereas we encourage new merchandise and innovation in our market, our prime precedence is defending policyholders and ensuring insurance coverage firms ship on their guarantees.”

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