In May, the Insurance Commissioner of California made the following observation:
“Some insurers and other persons engaged in the business of insurance in this state are unfairly taking advantage of the COVD-19 crisis and providing unjustifiably low settlement offers knowing financial need is high and recourse to the civil court system is the state is currently severely limited.”
The Insurance Commissioner went on to warn that anyone who engaged in such practices was violating the law, and would be subject to penalties.
It’s not just California that is experiencing such unfair settlement practices. Insurers in every state, including Connecticut, who lower or refuse to make settlement offers with full knowledge that it citizens are unable to access the court system during a pandemic are committing unfair insurance practices.
At the moment, only strong leadership from state government can stop these immoral practices, at least until such time as our courts return to allowing its citizens to avail themselves of the civil justice system to protect them from such abuses. One insurance commissioner has demonstrated such leadership. Who will be next?
