Class Action Lawsuit Against Nationwide Insurance


Class action lawsuits have been filed in Nevada against a dozen major auto insurers on Tuesday, charging that the insurers charged too high premiums during the current economic pandemic primarily by failing to properly account for an increase in accidents and driving. Lawsuit lawyers say that the large number of claims filed this month amounts to billions of dollars lost each year. The suit names the auto insurers individually, but also names the National Highway Traffic Safety Administration and the Insurance Information Institute as defendants in the case.

Class Action Lawsuit Against Nationwide Insurance

The suit argues that both the government and the insurance industry knew for months that an impending outbreak of swine flu was imminent, but did not take action to protect the public from the disease. “A prudent and business-minded business would have anticipated that a massive influenza epidemic might reduce net premiums but it didn’t,” said one attorney involved in the lawsuit.

“NAVSIP did not act reasonably or responsibly in forecasting that the current outbreak of swine flu would result in large numbers of claims and did not take the appropriate steps to mitigate the risk of losses resulting from such an outbreak.” The plaintiffs’ attorney is seeking class action status for their lawsuit.

The lawsuit comes at a time when the nation is bracing itself for what promises to be the biggest natural disaster since Hurricane Katrina.

Some areas of the South are facing unprecedented flooding and damage. Foreclosure relief has become a key issue in the race to keep homes from becoming underwater. Lawsuits are expected to grow in the coming months as homeowners scramble to make payments on the homes that they will lose in the upcoming months.

“The bottom line is that there’s going to be a lot of litigation in the next few months and we anticipate that settlements will occur in the springtime of next year,” said David Gamache, a lawyer with Deutsch Atkins in San Francisco. “NAVSIP and other insurance companies should have contingency agreements in place by late Spring.”

“NAVSIP and other insurance carriers have been lax in enforcing their mandatory claims provisions and business income provisions,” said Ed Kline, a senior vice president at Deutsch Atkins. “

In some instances, policyholders have actually been less than forthcoming with information necessary to process claims.” “As the law works today, claim processing may take longer than one would expect, if at all,” he added.

If a plaintiff is not able to obtain the settlement they are owed under their own lawsuit for the non-existent or fraudulent reason, they can use the provisions of the class action lawsuit against Nationwide in order to receive what they are due.

If they are denied coverage, for any reason, under any insurance policy, or if the carrier or underwriter knew about the exclusion or non-disability and did nothing to correct the mistake, the plaintiffs are entitled to recover damages from the responsible party, unless they can prove that there was an honest and reasonable mistake. “If you file a complaint and you are ultimately awarded damages, you are going to have to pay the entire amount without taking out a loan,” Kline explained. “You cannot get financing in this scenario because you are already very much underwater.”

Nationwide is one of the largest insurance companies in the United States and is known for one of the most generous discounts in the industry. Nationwide has approximately six hundred different discount categories, including pet, accident, dismemberment, accident, travel, theft, and special risk.

Pet insurance products, in particular, have a lot of fluctuation in rates, so it is important that plaintiffs fully investigate the rates and discounts before signing up. Class action settlements for these types of cases are usually quite generous, which is another reason why they have been increasing steadily since the 1980’s. In the coming months and years, it is possible that a class action lawsuit against Nationwide could force the company into bankruptcy.

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