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Judge Permits Suit Alleging Geico Overcharged Drivers During Pandemic


Judge Permits Suit Alleging Geico Overcharged Drivers During Pandemic
The auto insurer Geico Corp., a unit of Warren Buffett’s Berkshire Hathaway Inc., must face a proposed class action claiming it overcharged policyholders as the coronavirus pandemic led to less driving and fewer accidents, a judge has ruled.
In a decision on Thursday, U.S. District Judge Sharon Johnson Coleman in Chicago said Illinois drivers may try to prove Geico violated a state consumer fraud law by unfairly and deceptively marketing its “Geico Giveback” discount program. She dismissed breach of contract and unjust enrichment claims.
Neither Geico nor its lawyers immediately responded to requests for comment on Friday. Lawyers for the plaintiffs did not immediately respond to similar requests. ....

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Geico Alleges Insurance Fraud Scheme Against Medical Professional Cos.


Health
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December 22, 2020
On Monday in the Eastern District of New York, Geico, Geico Indemnity Co., Geico General Insurance Co., and Geico Casualty Co. filed a complaint against medical professional corporations and limited liability companies in New York and New Jersey, alleging that the entities have been operating a scheme that has billed Geico for thousands of no-fault claims for which the defendants purportedly were not eligible and those that were medically unnecessary and fraudulent.
New York’s no-fault laws require auto insurers to provide up to $50,000 in personal injury protection (PIP) benefits per beneficiary for expenses incurred through seeking medical care after an auto accident, the complaint explained. Once an insured person claims the PIP benefits through their health care provider, the health care provider submits the claim to the auto insurance company in question in order to receive payment; New Jersey has similar laws governin ....

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