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The California Division of Insurance coverage has introduced that it has reached two settlement agreements with Go Maps and its insurance coverage underwriter, Topa Insurance coverage, following an investigation into quite a few complaints relating to mishandling of shopper claims for over two dozen drivers.

As per the phrases of the settlement, Go Maps has consented to give up its insurance coverage license, pay a effective of $150,000, reimburse prices amounting to $50,000, and furnish the division with all obligatory data to make sure compliance with statutory necessities regarding current policyholders.

Topa, then again, acquired a effective of $2,108,000 and dedicated to sustaining everlasting entry to all insurance policies dealt with by future basic brokers, certifying the suitable licensure of all basic brokers and related entities, and refraining from in search of cash from customers who could have been undercharged resulting from score errors within the Go Maps/Topa program.

Violations of Go Maps and Topa

Go Maps, functioning as an insurtech, utilized an app-based advertising and marketing platform to conduct its insurance coverage enterprise for Topa. It is important for insurtech firms and the insurance coverage firms using them for advertising and marketing and managing their merchandise to stick to California’s shopper safety legal guidelines, sustaining licensed and educated people to make sure correct insurance coverage transactions inside the state.

In 2019, Go Maps partnered with Topa to deal with all features obligatory for the sale, service, administration, and claims dealing with of Topa’s non-public passenger car insurance policies bought to the general public by way of the Go Maps app. At its peak, the Go Maps/Topa program boasted over 10,000 California clients, constituting the vast majority of its roughly 12,000 insurance policies nationwide.

In June 2022, the California Division of Insurance coverage acted towards Go Maps and Topa to safeguard the general public from additional hurt ensuing from repeated violations of assorted shopper safety legal guidelines regarding insurance coverage claims.

The failure of Go Maps and Topa to stick to California’s shopper safety guidelines imposed monetary burdens on drivers, compelling them to cowl rental automotive bills and different prices whereas their insurance coverage claims had been delayed. Amongst numerous violations, Go Maps and/or Topa:

• Uncared for to pay claims inside 30 days publish dedication of protection or settlement
• Didn’t acknowledge claims, present obligatory kinds or directions, or provoke investigations inside the statutory 15-day requirement, surpassing the authorized 15-day requirement by over eight days on common
• Didn’t reply to customers’ inquiries about their claims inside 15 days, exceeding the authorized 15-day requirement by a mean of greater than 11 days
• Didn’t approve or deny claims inside 40 days, surpassing the authorized 40-day deadline by a mean of greater than 25 days
• Employed an unlicensed insurance coverage adjusting agency for claims adjustment

“These settlements symbolize an vital victory for California customers as we maintain all firms accountable and be sure that they adjust to our sturdy shopper safety legal guidelines,” Insurance coverage Commissioner Ricardo Lara stated. “Whereas we encourage new merchandise and innovation in our market, our prime precedence is defending policyholders and ensuring insurance coverage firms ship on their guarantees.”

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