Consumer Watchdog | Courts

Safeco Insurance Company Seeks Second California Homeowners' Insurance Rate Hike Within Year

Mon, 01 Feb 2010 14:54:41 PST

Consumer Watchdog Calls on Commissioner Poizner to Protect 230,000 California Homeowners from Safeco's Greed

Santa Monica, CA – Consumer Watchdog has asked the California Department of Insurance to reject the proposed 6.9%, or $13.3 million, homeowners insurance rate hike proposed by Safeco Insurance Company. Safeco, which is owned by California's fifth largest homeowners insurer Liberty Mutual, already raised its rates by 4.1% last July. If Safeco's proposed increase is approved, then the homeowners’ insurance rates charged to its 230,000 California customers will have increased by an average of 11% in less than a year.

California Insurers Lose Bid To Block Payments To Advocates

Fri, 08 Jan 2010 11:19:00 PST

LOS ANGELES, CA -- A California appeals court upheld changes to state insurance regulations that clarified that insurers must pay the cost of challenges to rates deemed excessive. The appellate panel rejected a challenge from the Association of California Insurance Companies and others. Hoping to discourage consumers from challenging rate applications, insurance companies argued that they were not required to pay the legal costs if they withdrew or settled challenges to rate applications before a formal hearing on their application was called, Pam Pressley, Consumer Watchdog's litigation director, said in a statement. The revised regulation stemmed from a 2005 court case that said a consumer group was not entitled to reimbursement because there was no hearing, Sorich said.

Calif. Court Says Insurers Must Pay Consumer Advocate Fees

Tue, 05 Jan 2010 16:44:22 PST

A California appeals court ruled that the state’s insurers must compensate consumer advocacy groups when they take action to have a carrier’s rates rolled back, even when a settlement is reached without a hearing. For consumer groups, the ruling was viewed as a major triumph. “This important victory ensures that California motorists, homeowners and businesses will pay the lowest insurance premiums possible,” said Consumer Watchdog’s litigation director, Pam Pressley, in a statement. “Like many other provisions of Proposition 103 that the insurance industry has tried to attack with lawsuits, this one has helped save Californians billions of dollars. Companies can only be made to obey the law when the public can challenge insurers’ attempts to illegally hike rates and actively participate in the rate review and approval process as Prop 103 requires,” said Ms. Pressley.

Insurance-Rate-Hike Foes Can Recoup Legal Fees

Tue, 05 Jan 2010 10:31:33 PST

Consumer groups that successfully challenge insurance rate increases can recoup their legal fees from the insurers, even when the companies drop their requests or agree to a compromise, a state appeals court has ruled. The author of the ballot measure said the ruling was an important victory for consumer advocates and would encourage them to hire experts who could take on insurance company witnesses. "The insurance industry was attempting to escape accountability when they ask for permission to raise rates," Harvey Rosenfield, founder of an organization called Consumer Watchdog, said Monday. "If they can prevent consumer groups from scrutinizing rates, they're more able to overcharge."

Court of Appeal Upholds Public Right to Scrutinize, Challenge Insurance Company Price Gouging

Mon, 04 Jan 2010 12:01:01 PST

Consumer Watchdog, Dep't of Insurance Win Victory to Protect Prop 103, Save Policyholders Billions

Santa Monica, CA – The California Court of Appeal has rejected an attempt by the insurance industry to cripple the right of the public, under Proposition 103, to scrutinize and challenge unjustified rate increases. The Court agreed with the nonprofit Consumer Watchdog and the Department of Insurance in upholding changes to state insurance regulations to make clear that insurance companies must pay the costs of consumer challenges to excessive insurance rates, in a decision issued last week.

Nextel Settles For $750,000

Mon, 21 Dec 2009 16:18:16 PST

LOS ANGELES, CA -- A Superior Court judge has approved a $750,000 settlement between Nextel Communications Inc. and customers, putting an end to a six year-old lawsuit over charges for paper bills. Current Nextel customers will receive credits in their billing statements while former subscribers will get cash compensation, according to court documents. More importantly, consumers won the right to see their bills for free... "You can't squeeze out extra nickels and dollars from customers by charging them to read their own bill," said Doug Heller, executive director of the non-profit Consumer Watchdog. "We've been able to change practices at this company."

Mercury Insurance Submits Initiative Signatures To Trick Voters Into Paying Higher Auto Insurance Premiums

Wed, 16 Dec 2009 11:26:52 PST

Campaign for Consumer Rights Warns Soldiers, Seniors and other Californians Would Be Penalized For Having a Lapse in Insurance Coverage, Even If They Weren't Driving

(News Release by the Campaign for Consumer Rights)
Santa Monica, CA — Auto Insurance giant Mercury Insurance is submitting signatures this week to place its deceptive initiative on the California ballot in 2010. The measure would surcharge drivers, including soldiers and seniors, who have had a lapse in car insurance coverage for virtually any reason during the past five years. Under the proposal, people who stopped driving and didn't need insurance for a time would be required to pay hundreds of dollars more for insurance when they sought to restart coverage. The measure would gut a provision of the 1988 insurance reform measure Prop. 103, which prohibits companies from raising rates on people because they did not have auto insurance in the past.

Rate Proceedings Chart - Pending and Completed

Tue, 08 Dec 2009 12:51:00 PST

A chart of Consumer Watchdog's pending and completed challenges to California insurance companies' proposed rate changes.

Imburgia, Mecca and Greiner v. DirecTv

Wed, 18 Nov 2009 14:38:00 PST

Imburgia, Mecca and Greiner v. DirecTv
Los Angeles Superior Court No. BC 398295

UPDATE: Court Denies Preliminary Injunction Against DirecTv

During...

Faigman v. AT&T Mobility LLC

Wed, 18 Nov 2009 14:34:37 PST

Faigman v. AT&T Mobility LLC
U.S. District Court - Northern District of California
Case3:06-cv-04622-MHP

Suit Against Cingular (Now AT&T) for Providing Customers "Rewards Cards"...

California Department of Insurance Notice of Noncompliance v. Mercury Insurance Company

Tue, 17 Nov 2009 17:51:00 PST

California Department of Insurance Notice of Noncompliance v. Mercury Insurance Company
No. NC-03027545

Consumer Watchdog Joins Insurance Commissioner's Complaint Against...

Donabedian v Mercury Insurance Company

Tue, 17 Nov 2009 16:06:00 PST

Donabedian v Mercury Insurance Company

Los Angeles Superior Court No. BC249019
Court of Appeal: Donabedian v. Mercury Insurance Company (2004) 116 Cal.App.4th 968

Consumer Watchdog Protects Public and Voters in Decade-Long Battle Against Overcharges by Mercury Insurance Company

State Approves Autism Claims

Fri, 13 Nov 2009 13:45:00 PST

Several families of autistic children denied treatments by their health plans have won administrative appeals, in a sign that a recent court ruling scrutinizing regulators may be having an effect on the state's handling of the cases.

...

Court Advances Autism-Treatment Lawsuit Against California Regulator

Wed, 28 Oct 2009 13:39:00 PDT

LOS ANGELES, CA -- A lawsuit claiming the California Department of Managed Care improperly allowed health insurers to decline payment for autism treatments will proceed to trial after a Los Angeles County Superior Court judge rebuked the state in a preliminary ruling. A Consumer Watchdog representative said regulators should stop denying coverage on the grounds that ABA providers are certified not by the state but by a national board. Continuing to do so would risk legal damages, the advocacy group said in a statement. "The DMHC has to change its practices going forward, and the department should immediately reverse its previous denials," Pam Pressley, litigation director for Consumer Watchdog, said in a statement. "Gov. Schwarzenegger, a long-time and vocal supporter of the Special Olympics and developmentally disabled children, should require his regulators to abide by the law."

Suit Challenges State's Autism Practices

Tue, 27 Oct 2009 15:20:23 PDT

A lawsuit alleging state regulators allow insurance companies to deny necessary but expensive treatment for autistic children in violation of state law has enough merit to proceed to trial, a Los Angeles Superior Court judge has ruled. The lawsuit, filed in July by Santa Monica-based Consumer Watchdog, seeks to compel the California Department of Managed Health Care to order health plans to cover applied behavioral analysis (ABA) if a member complains the treatment was denied though it is deemed medically necessary and is provided by licensed personnel or under the supervision of licensed personnel.

Autism Treatment Claims Dispute Can Go To Trial

Tue, 27 Oct 2009 13:03:28 PDT

A lawsuit seeking health care coverage for the use of applied behavioral analysis in the treatment of autism has been cleared for trial by the Los Angeles County Superior Court. Consumer Watchdog et. al. vs. California Department of Managed Health Care et. al. involves Kaiser Permanente’s denial of coverage for a child’s ABA treatment because the provider wasn’t licensed by the state. The Oakland, Calif.-based health maintenance organization cited regulations issued by the California Department of Managed Health Care as its reason for denying coverage for ABA treatment.

Judge To Schwarzenegger Administration: Autism Denials Illegal

Tue, 27 Oct 2009 11:35:31 PDT

Santa Monica, CA – A Los Angeles County Superior Court judge issued a ruling finding that the Schwarzenegger Administration has illegally sided with health insurance companies that deny access to care for autistic children. A memo circulated by the Schwarzenegger Administration to health insurers was also ruled to be an illegal “underground regulation” because it violated state law requiring a public process for changing insurance regulations.

Ruling Deals A Blow To Denials Of Autism Treatment

Tue, 27 Oct 2009 10:08:00 PDT

Refusing to cover a costly behavioral therapy because the care provider lacks a state license violates California law, a Los Angeles County judge finds.

Consumer Watchdog President Jamie Court said the ruling was reason enough for Gov. Arnold Schwarzenegger to order the department to stop fighting the suit and start ordering insurers to provide the treatment to their autistic members. "For an administration that is so involved with the Special Olympics to not understand the harm it's causing every day that an autistic child doesn't get the care they need, is not only legally inexcusable, but morally reprehensible," Court said.

Flipped the Bird: You Can Sue; Health Insurer Kills a Loved One: You're Out of Luck -- Consumer Watchdog Calls On Congress To Close Loophole With "Nataline's Law"

Thu, 08 Oct 2009 10:05:00 PDT

Consumer Watchdog joined with the parents of a 17 year-old who died after her health insurer, CIGNA, denied a liver transplant to call on Congress to close the legal loophole that bars her family and 132 million Americans from having their day in court.

Couple Battle To Make Insurers Liable For Coverage Decisions

Wed, 07 Oct 2009 16:26:44 PDT

Their wrongful-death suit against Cigna over the loss of their 17-year-old daughter was blocked. Now they aim to bring change.

With Congress considering a healthcare overhaul -- including a requirement that individuals buy health insurance -- Potter, the Sarkisyans and their supporters want lawmakers to undo the high court's 1987 ERISA ruling. Santa Monica-based Consumer Watchdog sent a letter to key congressional leaders urging them to undo the ERISA ruling, and president Jamie Court said Nataline's case shows why such a move is crucial to any healthcare reform. "If the insurer decides they don't want to pay for the treatment because they can save a lot of money, there is not a dime available in damages if the person dies or is injured," Court said. "It's cheaper to kill you. If you die, you can't go to court." It's not the first time this aspect of ERISA has come under fire.

Patient Sues Anthem Blue Cross Over Liver Transplant

Wed, 07 Oct 2009 11:23:58 PDT

Fearing for his life, Ephram Nehme paid for his own surgery in Indiana, where wait times for organ transplants are far shorter than in California. Anthem says it did nothing wrong.

Ephram Nehme was gravely ill when Anthem Blue Cross of California agreed to pay for a liver transplant his physician said he needed to survive. Then, his condition went downhill fast. The news from his doctor was bad. The word from his insurer was worse. Nehme's doctor told him he could die waiting for an organ in California and urged him to go to Indiana, where the waiting list was shorter. But Anthem Blue Cross said no. It would not pay for a transplant in Indiana.

National Health Care Reformers Should Pay Attention to Lawsuit Alleging that Nation's Largest Insurer Routinely Denies Liver Transplants

Wed, 07 Oct 2009 09:48:00 PDT

Santa Monica, CA -- A trial beginning next week targeting the nation's largest health insurer and its California subsidiary for allegedly automatically denying requests for out-of-network liver transplants will help shed light on the need for stronger health reform than is currently being considered, according to Consumer Watchdog. The group urged President Obama, White House representatives, and the national news media to follow the trial.

US Judge Postpones Googlebooks Hearing

Fri, 25 Sep 2009 09:44:26 PDT

$125 Million Pact 'Raises Significant Issues'

"Clearly, voices such as ours had an impact on Judge Chin," says John Simpson, of the consumer watchdog known as Consumer Watchdog, one of the many organizations opposed to the deal. "There was no way the proposed settlement could go forward. Consumer Watchdog is pleased there will be a status hearing on the case on Oct. 7." Like the Open Book Alliance - a group that includes the Internet Archive, Microsoft, and Amazon - Consumer Watchdog advocates solving the ebook copyright issue with federal legislation. "We believe that will demonstrate that the proper place to solve many of the case's thorniest problems, such as that of orphan books, is in Congress," Simpson says. "Consumer Watchdog urges Congress to act expeditiously because it is important to build digital libraries."

Judge Delays Google Books Hearing

Fri, 25 Sep 2009 09:32:47 PDT

A New York judge has put Google's vision of creating the world's biggest digital library on hold.

Microsoft, Amazon and Yahoo have filed objections to the settlement with the court, along with the French and German governments, privacy advocates and consumer watchdog groups. "Clearly voices such as ours had an impact on Judge Chin," wrote consumer watchdog advocate John Simpson in an email to BBC News. "There was no way the proposed settlement could go forward. We believe that the proper place to solve many of the case's thorniest problems, such as that of orphan books, is in Congress because it is important to build digital libraries."

Lawsuit Targets DirecTV's Early Cancellation Penalty

Thu, 24 Sep 2009 09:41:20 PDT

California consumers have taken DirecTV to court, saying the El Segundo-based satellite television company's "early cancellation penalty" unlawfully removes funds from customer bank accounts and charges their credit cards without prior knowledge or consent. DirecTV denies the allegations, which have been brewing in state courts for a year. The company has more than 18 million subscribers nationwide but does not break out subscriptions for individual states or metro markets. The latest action came Monday, when Santa Monica-based Consumer Watchdog joined plaintiffs in a motion asking the court to block DirecTV from collecting the disputed fees until the class-action suit is resolved.