Topa Insurance, Go Maps face heavy fines for mishandling auto claims
Topa Insurance was fined $2.1 million over an allegation that more than two dozen auto claims were mishandled.
Insurtech Go Maps, Inc. and its underwriter Topa Insurance Co. agreed to a settlement following allegations that their program had mishandled more than two dozen auto insurance claims, according to the California Department of Insurance (CDI).
Topa Insurance was fined $2.1 million, and agreed that moving forward it would have “permanent access to all policies managed by any future general agents, certify all general agents and entities hired by general agents are properly licensed,” CDI reported. The insurance company is also barred from seeking any additional premiums from policyholders that might have been undercharged because of rating mistakes in the Go Maps/Topa program.
For its role, Go Maps surrendered its insurance license, and will pay a $150,000 fine and $50,000 in cost reimbursement.
According to the insurance department, Go Maps and Topa Insurance violated a number of consumer protection regulations, including:
- Failure to pay claims within 30 days after coverage was determined or a settlement was reached.
- Failure to acknowledge claims and provide policyholders with necessary forms or instructions.
- Failure to begin investigations within the statutory 15-day window.
- Failure to respond to policyholder inquiries about their claims within 15 days.
- Failure to deny or accept claims within 40 days.
- Hiring an unlicensed adjusting firm to adjust claims.
- Forcing drivers to pay for rental cars and other expenses while claims were delayed.
“These settlements represent an important victory for California consumers as we hold all companies accountable and ensure that they comply with our strong consumer protection laws,” California Insurance Commissioner Ricardo Lara said in a release. “While we encourage new products and innovation in our marketplace, our top priority is protecting policyholders and making sure insurance companies deliver on their promises.”
According to CDI, Topa Insurance and Go Maps entered into an agreement in 2019 to have the insurtech perform all sales, service, management and claims handling functions for the insurer’s private passenger auto policies sold through the Go Maps app. At one point, the program had more than 10,000 policies in California, which represented a majority of the program’s approximately 12,000 policies nationwide.
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