Lawsuit accuses Nationwide Common auto insurer of unfairly denying claims

Andy Nguyen from San Diego regrets trying a U-turn that ended up with him ramming his automobile into a light-weight pole in Oxnard, California. The crash knocked down the pole, took out a bit of his automobile and set off the airbags.

“It hurts,” Nguyen recalled, exhibiting NBC 7 among the footage he took of the accident. “It actually disorients. The adrenaline kicks in as you get out of the automobile.”

Nguyen stated he instantly referred to as his insurance coverage firm, Nationwide Common, to file a declare. An adjuster returned his name and obtained the small print of the crash, however then the questions obtained a bit unusual, he stated.

“ ‘Who else lives in your house?’ ” stated Nguyen, explaining that he answered that he lived together with his dad and mom, 20-year-old brother and 14-year-old sister. “She requested for his or her birthdate, and I offered it like I offered the primary time to my dealer.”

Denied Claims

Nguyen thought his insurance coverage would cowl the $12,000 in damages he brought about to town property, however he was improper. A few weeks later, he was despatched a rescission discover. At that second, he realized why the adjuster requested him who else lived at house.

“I felt like they stabbed me within the again.”

Andy Nguyen

“I used to be mad,” Nguyen stated. “Are you kidding? I used to be mad, I felt like they stabbed me within the again.”

What occurred to Nguyen is much like what Sergio Preciado of San Diego stated he went by after inflicting a automobile accident off Interstat 805. 

Preciado referred to as NBC 7 Responds after Nationwide Common denied his declare and rescinded his coverage as a result of he didn’t disclose he had a 20-year-old son dwelling at house. He needed to pay $5,000 for the damages he brought about to the automobile.

“What does he should do with it,” Preciado stated. “He wasn’t driving. He wasn’t with me. He was at house or faculty. I don’t know the place he was, however he didn’t have a license, he didn’t drive when it occurred.”

Each Nguyen and Preciado had been returned the premiums they paid for his or her insurance policies, however the cash they obtained was removed from sufficient to cowl the price of their crashes.

Lawsuit in opposition to Nationwide Common

“They all the time have this ace within the gap, of their again pocket, that they may pull out on the finish of the day to probably get them out of a declare,” legal professional Justin King advised NBC 7.

King represents Nguyen and practically 300 different drivers in a lawsuit he filed in opposition to Nationwide Common, accusing the insurance coverage firm of unfairly denying claims. He’s presently attempting to certify it as a category motion lawsuit.

The grievance claims there are solely two locations within the digital software the place family members are introduced up. The primary one is below the Drivers Tab.

“And that’s deceiving as a result of, to a layperson, going by the digital software with their dealer, they’re going to be requested, ‘Who’re the drivers of your automobile?’ as a result of that’s what the web page says,” King stated.

The second place within the digital software the place family members are introduced up is below the Insured’s Info. Based on the lawsuit, it populates the web page with names related to an handle.

“It’s not sufficient, as a result of these programs don’t all the time populate anyone who could stay in the home,” stated King, including that the web page doesn’t give the choice so as to add somebody who could have been missed.

A distinct web page asks whether or not all family members over the age of 14 have been disclosed. In case you reply “no” the applying course of merely stops as an alternative of permitting you so as to add info, stated a Nationwide Common director of product administration in a recorded deposition.

“It doesn’t take you to some web page so as to add them,” King stated. “It simply received’t underwrite the coverage, so it needs to be answered with a ‘sure,’ and so they premarked the reply with the ‘sure.’ They don’t pre-mark very many different solutions within the digital software.”

A Nationwide Common adjuster who was additionally deposed testified that she and her colleagues had been skilled to search out out who lives at house when working a declare, whatever the details.

“They usually ask them to hunt this info in order that they’ll then rescind the coverage and say, ‘You didn’t disclose that you just lived with these family members again once you utilized for the coverage,’” King stated.

The legal professional clarified that he believes that is no flaw in Nationwide Common’s system and that they know what they’re doing.

“I imagine that is deliberately performed,” King stated. “I imagine these are sensible individuals at these companies, they’ve arrange this digital software, they’ve arrange this course of, there may be some huge cash at stake.”

NBC 7 Responds reached out to Nationwide Common Insurance coverage and its mother or father firm, Allstate Insurance coverage, a number of occasions however by no means acquired a response. In courtroom filings, they issued a basic denial of all allegations within the lawsuit.

Brokers stunned by denials

“Have just a bit little bit of disgrace,” stated Marisol Alvarez, who’s a licensed insurance coverage dealer who owned her personal firm and is an knowledgeable witness in King’s lawsuit.

Alvarez defined that Nationwide Common got here onto her radar a number of years in the past as a top quality, low-cost choice for her shoppers.

“It was nice till we began having claims,” Alvarez stated, including that, initially, she and different brokers took the brunt of the policyholders’ anger after they had been denied protection.

Alvarez recalled scrambling to search out solutions.

“After awhile, it began changing into clear about this — this 14-year-old household-member clause,” Alvarez stated. “For my 20 years, I hadn’t seen something prefer it.”

Alvarez defined that the business normal had all the time been to call 16-year-olds who may be driving an applicant’s automobile. She added that no different firm she’s ever labored with denied protection to her shoppers due to somebody dwelling at house who wasn’t even within the automobile.

“You rated the danger based mostly on the motive force and the automobile, so what’s the downside?” Alvarez requested. “Who’re you that it’s good to know who lives the place? You’re not insuring the entire family.”

The dealer stated Nationwide Common by no means knowledgeable her or her workforce of those potentialities for protection denial.

“And I spoke with advertising and marketing reps on numerous events, and so they by no means stated, ‘Watch out, as a result of if that occurs, we’re not going to pay any claims,’ ” Alvarez stated.

NBC 7 Responds shared the lawsuit with the California Division of Insurance coverage (CDI) to get its ideas on the allegations. The company despatched the next assertion:

CDI will not be a celebration to the lawsuit, and we can not touch upon the allegations made within the submitting. To guard shopper confidentiality, we additionally can not touch upon shopper complaints.

Nguyen stated he needs CDI was concerned and would look into Nationwide Common’s manner of doing enterprise.

“They’re simply attempting to not cowl me,” Nguyen stated, asserting that this technique by Nationwide Common places a stain on the auto insurance coverage business as a complete.

“It’s fairly cutthroat, to be sincere, as a result of individuals get insurance coverage to ensure they’re protected,” Nguyen stated.