AG SUNDAY AND GEICO AGREE ON IMPROVEMENTS TO REMEDY CUSTOMER CONFUSION AND PREVENT UNFAIR AUTO INSURANCE CANCELLATIONS
The following information was released by the office of the
Attorney General
The agreement stems from an investigation of a complaint from a new GEICO policyholder in
The investigation revealed that the company utilized a tool with artificial intelligence features to select the complainant for further review and underwriting, leading to cancellation without adequate notice and the customer unknowingly driving uninsured.
"Consumers deserve transparency and fairness throughout the insurance process, especially when losing coverage can leave someone unknowingly uninsured and vulnerable to penalties and financial risk," Attorney General Sunday said. "This agreement secures meaningful improvements that will help protect policyholders, and ensures that the company's use of new technology is done within industry standards."
In the
The Commonwealth was concerned about the process's overall fairness and its likelihood of confusing lower-income new policyholders selected for underwriting review. The Commonwealth also alleged the company failed to make it clear in its final communication to the consumer that her document submission was inadequate to prevent cancellation.
Under the agreement, GEICO agreed to act consistent with the
Additionally, GEICO agreed to allow consumers to provide one form of verification of residency rather than two and to permit a copy of a consumer's current driver's license to serve as proof of residency, so long as the address on the license matches the policy. The company will also train customer service representatives regarding the updated requirements and the need for clarity throughout the process.
A settlement agreement shall not be considered an admission of violation of the law.



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