California Department of Insurance Alleges Mishandled Claims by App-Based Auto Insurance Seller and Topa

June 28, 2022

The California Department of Insurance is taking legal action against Go Maps Inc., and its insurance underwriter, Topa Insurance Co., after an investigation found the app-based insurance seller mishandled consumer claims for more than two dozen drivers.

Under the orders to show cause, both Go Maps and Topa could be ordered to cease and desist selling insurance and pay financial penalties, according to the CDI.

Go Maps is an insurtech company that uses an app-based marketing platform to sell and transact its insurance business for Topa.

According to the CDI, Go Maps and Topa repeatedly violated consumer protection laws relating to insurance claims. The department’s investigation is ongoing.

Go Maps entered into an agreement with Topa in 2019 to perform functions necessary for the sale, service, management, and claims handling of Topa’s private passenger automobile policies that were sold to the public through the Go Maps app. The Go Maps/Topa program reportedly has more than 10,000 California customers representing the vast majority of its approximately 12,000 policies nationwide.

The alleged failures to follow California’s existing consumer protection rules forced drivers to pay for rental car expenses and other costs while their insurance claims were delayed, among other alleged violations such as:

  • Failing to pay claims within 30 days after the coverage was determined or a settlement was reached.
  • Failing to acknowledge claims, provide necessary forms or instructions, or begin investigations within the statutory 15-day requirement.
  • Failing to respond to consumers’ inquiries about their claims within 15 days.
  • Failing to deny or accept claims within 40 days.
  • Hiring an unlicensed insurance adjusting firm to adjust claims.

The department alleges that Go Maps’ and Topa’s actions constitute a “general business practice” of unfair claims settlement practices that may have affected additional policyholders and claimants who were involved in accidents with Go Maps/Topa policyholders.

If the department’s allegations are sustained, the companies could face fines, and Go Maps could face revocation or suspension of its license to transact insurance, while Topa could face suspension of its Certificate of Authority with the Department.

Topics California Auto Claims

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