Law.com Litigation Trendspotter: Boilerplate Policy Language Makes Auto Insurers Targets for Decades-Spanning Class Claims
Plaintiffs lawyers have been taking aim at what they allege are deceptive and decades-long practices by insurers to collect premiums for uninsured and underinsured motorist benefits that policyholders don't realize are virtually inaccessible.
October 05, 2021 at 08:41 PM
7 minute read
Credit: Photographee.eu/Shutterstock
The Trend:
Plaintiffs lawyers have been taking aim at what they allege are deceptive and decades-long practices by insurers to collect premiums for uninsured and underinsured motorist benefits that policyholders don't realize are virtually inaccessible.
The Driver:
As several recent class actions demonstrate, the boilerplate nature of motor vehicle insurance policies can leave insurers vulnerable to potentially broad exposure when courts find fault with standard contractual language that has been in use for dozens of years.
The Buzz:
>> The New Mexico Supreme Court ruled Monday that insurance companies must adequately disclose limitations of minimum uninsured or underinsured motorist coverage. Otherwise, they may not charge a premium for it. The decision has paved the way for a federal class action to proceed against Safeco, Liberty Mutual Insurance Co., Liberty Personal Insurance Co. and Safeco National Insurance Co., alleging the insurers have spent decades deceptively collecting premiums for "worthless" UM/UIM coverage.
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