State Farm has faced multiple lawsuits related to discrimination against minorities in its insurance practices. In 2015, the company agreed to pay $250 million to settle a class action lawsuit. It accused State Farm of discriminating against African American and Hispanic customers. This occurred in several states, including California, Texas, and Illinois. The lawsuit alleged that State Farm charged higher premiums and engaged in redlining. This is the practice of denying insurance to certain neighborhoods based on their racial or ethnic makeup.
In a recent lawsuit, the case of Chee Vang, Yee Vang, Xeng Thao vs. State Farm is a class action lawsuit filed in Minnesota federal court in 2017. The plaintiffs, who are Hmong Americans, alleged that State Farm engaged in discriminatory practices. State Farm denied them and other Hmong Americans full automobile insurance coverage.
What is PIP & TIN Diversions?
The plaintiffs claimed that State Farm violated the Minnesota Human Rights Act and the Fair Housing Act. They denied or limited coverage for automobile insurance based on the race and national origin of the policyholders. They alleged that State Farm used criteria such as ZIP codes with high Hmong American populations and Hmong surnames to deny or limit coverage. This resulted in Hmong Americans paying higher premiums and facing greater financial burdens.
In this particular case, the insureds suffered injuries which they received medical treatments. State Farm, instead of paying their claims, decided to put their claim in a TIN diversion status. State Farm performed an investigation for possible insurance fraud.
PIP or Personal Injury Insurance pays for medical expenses from injuries during a covered accident. One of the benefits of PIP coverage is that it provides benefits regardless of who was at fault for the accident. This means that policyholders and passengers can receive benefits even if they caused the accident. Additionally, PIP coverage can provide benefits quickly. Usually without the need for lengthy legal battles or negotiations with insurance companies. State Farm delays, sometimes indefinitely, under the guise of this TIN diversion prolonging the investigation indefinitely. This, in effect, keeps them from paying the insurance claim. This practice has been linked to minorities such as Hispanics who may not know the processes well to seek justice.
A Lex Machina report showed that State Farm Mutual Auto Insurance has the highest incidence of cases being filed against them with just under 2,500 lawsuits!
What is a class action lawsuit?
In a class action lawsuit, a group of individuals, called the plaintiffs, bring a legal claim against a defendant or defendants. The plaintiffs in a class action lawsuit are seeking compensation or other relief on behalf of a larger group of people, called the class. This class share similar experiences or injuries.
In a class action lawsuit, the plaintiffs must prove that the defendant’s actions caused harm to the class. Also that the harm suffered by individual class members was a result of the defendant’s actions. A successful lawsuit awards damages and relief distributed to all members of the class.
Class action lawsuits can be a powerful tool for seeking justice and holding companies accountable for their actions. They allow individuals who may not have the resources to file a lawsuit on their own to band together and pursue legal action as a group.
Have you been affected by discrimination from your State Farm Insurance policy? Talk to Attorney Javier Marcos
Discrimination by auto insurance companies is a serious issue. It can affect individuals who belong to certain groups, such as minorities and low-income individuals. Auto insurance discrimination occurs when an insurance company charges higher premiums, denies coverage, or provides less favorable policy terms based on factors such as race, ethnicity, income, or credit score.
Insurance companies may use a variety of factors to determine the premiums they charge. This includes the age, driving history, and type of vehicle of the policyholder. However, if an insurance company uses factors unrelated to the risk of an accident, such as race or income, to set premiums or make coverage decisions. This is a discriminatory practice.
Auto insurance discrimination can have serious consequences for individuals who are unfairly denied coverage or charged higher premiums. It can also contribute to systemic inequalities. They may find it difficult to obtain insurance coverage and have access to necessary resources.
To combat auto insurance discrimination, many states have implemented laws and regulations that prohibit insurers from using certain factors, such as race, gender, or marital status, to set premiums or make coverage decisions. Additionally, individuals who believe they have been the victim of discrimination by an auto insurance company can file complaints with state insurance departments or seek legal recourse through a civil lawsuit.
It is important for individuals to be aware of their rights and to understand the factors that insurance companies are legally allowed to use when setting premiums or making coverage decisions. By advocating for fair and non-discriminatory insurance practices, individuals and organizations can work towards a more equitable insurance system for all.
Contact Attorney Javier Marcos
He can look at your accident claim and your insurance coverage and give you the information you need to get what you are owed. Don’t go at it alone. Consultations are always free and there is never any out of pocket costs. Attorney Javier Marcos is here to defend the rights of minorities in the eyes of the law. “Justice for Hispanics” is not just a motto, it is how we do business all day, every day. Discrimination and injustice do not sleep and neither does the Law Offices of Marcos and Associates.