State Insurance Commissioner John Garamendi filed charges of unfair practices against the California State Automobile Assn. and two other insurers. Garamendi charged the CSAA Inter-Insurance Bureau with unreasonable delays in payment of health insurance claims on 18 separate cases, each of which could be punishable by a $10,000 fine. A spokesman for CSAA said the company had not been informed of the specific cases named by Garamendi, but he said CSAA looks forward to a full airing of its efforts to counter what he called “an endemic, systemic problem” of insurance fraud by consumers. Garamendi also charged Provident Life & Accident Co., a Tennessee-based life insurer, with failure to pay interest on death claims, and Santa Ana pet insurer Veterinary Pet Insurance Co. with misleading advertising and delays in handling claims.
California IN BRIEF : SAN FRANCISCO : 3 Insurers Accused of Unfair Practices
From Times Staff and Wire Reports