Allstate Insurance has filed a lawsuit seeking reimbursement of more than $1.1 million from 16 New York State individuals and medical companies it claims were illegally run by people with no medical training and were involved in submitting bogus claims for payment of personal injury protection (PIP) benefits.
A complaint filed in federal district court on Dec. 30 claims that a chiropractor, a layperson and three professional medical corporations that had been incorporated under false pretenses, wrongly identifying a medical doctor as their owner, turned in dishonest bills to Allstate, according to the coverage provider.
Allstate claims the companies were actually owned and controlled by individuals with no background in the medical field, rather than by licensed medical professionals, as is required by state law.
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Minnesota regulators say the state’s insurance providers have paid out $64 million on damage claims—including about $2.25 million involving auto policies—filed in the wake of a tornado that tore through Minneapolis in May.
Those settlements account for about 80 percent of the adjusted claims filed in the aftermath of the storm, according to the state Department of Commerce. Another 920 claims—estimated at $8.7 million—have yet to be processed, but are expected to be paid, officials said.
The twister that struck north Minneapolis on May 22 was part of an outbreak of tornadoes over Midwestern and Southern states that caused at least 177 deaths and an estimated $6.5 billion in insured losses, according to the National Oceanic and Atmospheric Administration.
As of Oct. 1, Minnes
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Saga Motor Insurance has reported that insurance claims by over 50s drivers are actually down 17% this December, compared with the same time last year.
The firm has concluded that older motorists are heeding warnings to stay off the roads as Britain freezes, given that AA statistics show that motorists in general are making twice as many claims as normal, due to the bad weather.
Saga’s director general, Ros Altmann, comments: “It is really encouraging that older motorists are using their experience and planning around the bad weather to ensure they are not out on the roads in the ice and snow.”
According to the AA, motor insurance claims doubled recently, with 71% of customers saying that the slippery conditions contributed to their accident.
A clampdown on claims settlements by insurance companies is proving the worth of local brokers, according to Higos Insurance Services’ managing director, Ian Gosden.
Tougher economic conditions, an increase in claims generated by “no-win-no-fee” claims companies and a rise in insurance fraud are raising costs for insurers and according to figures from the British Insurance Brokers Association (BIBA), more claims are being disputed as stricter policy wording interpretations are applied.
The managing director suggests that this is where people who are won over by cheap prices on comparison websites can lose out.
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