Insurers May be Underpaying Injury Claims

The Consumer Federation of America (CFA) released a report that detailed how some insurance companies alter computer programs to avoid fully paying injury claims. The report calls on federal regulators to investigate these abusive practices.

Allstate Insurance Co. is one of the companies scrutinized in the report about its use of claims-handling software program, Colossus, made by Computer Sciences Corp., according to Law360 (subscription required).

The report states that insurance companies can adjust the software to decrease claims by a fixed amount across the board, according to the CFA. Companies can also require claims adjusters to input lower medical bill amounts and assign some of the blame to the policyholder, decreasing the recommended payout amount, according to Law360.

The CFA wants regulators to start supervising the software use of all companies that sell insurance. It is also requesting that consumers be notified when claims are assessed by the software so that they can decide if their settlement amounts are fair.

If you or a loved one has received an unfair insurance claim settlement, contact Sokolove Law for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you. Call us today at 800-581-6358.

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