Direct Auto Insurance Markets Worthless Policies To Poor Blacks, Claims Lawsuit (2)

Direct Auto InsuranceDirect Auto Insurance targets its worthless policies to principally blacks and Hispanics, claims a Chicago lawsuit. An insurance company used illegal, predatory practices by basing its business plan on selling insurance policies to low-revenue individuals, denying legitimate claims and submitting declaratory judgment against policyholders, according to a lawsuit filed earlier this month.

Direct Auto Insurance’s alleged intention to not pay out a lot of the claims made by clients reminiscent of May, violated the Illinois Consumer Fraud and Deceptive Practices Act, in accordance with the recently-filed criticism.

Defendant violated the Illinois Consumer Fraud and Deceptive Practices Act by providing artificially low premium prices to plaintiff and different members of the class, desiring to induce plaintiff and different members of the class to purchase insurance policies of insurance without any intention of paying claims,” May claims.

Additionally, May alleges that Direct Auto Insurance violated the Illinois Insurance Code as a result of its promoting of insurance policies and subsequent denial of claims made underneath those insurance policies was based on misrepresentation.

It only merited mention in a Top List because the Top 4 insurance firms in Illinois with a poor grievance ratio – and this record was launched by the Illinois Department of Insurance.