This class action alleges that refunds to customers for travel insurance issued by AGA Service Company or Allianz were insufficient. The complaint claims that Allianz unfairly did not refund premiums for post-departure risks, even though the company had not yet undertaken those risks because those portions of the insurance policy had not yet gone into effect.
The class for this action includes all those who, while living in the US, purchased from the defendants single-trip insurance including coverage for post-departure risks, who then cancelled their trips prior to departure, and who did not receive a refund for the post-departure coverage. The case also includes California and Tennessee subclasses.
AGA, which does business at times under the name of Allianz, provides travel insurance products that reimburse customers for losses connected with travel. For example, it may cover pre-departure risks by covering losses of airfare or accommodation deposits if customers cancel trips at short notice. Or it may cover post-departure losses for the interruption of a trip, lost baggage, or medical or dental emergencies. Customers may choose different kinds of coverage or benefits, which Allianz then bundles into a policy.
Allianz plans typically offer a “Satisfaction Guarantee” that allows customers to cancel their insurance plans within ten days of purchase and receive a full refund as long as they have not yet started their trips or filed a claim. There is no information on how refunds will be handled after this ten-day period, and the complaint alleges that Allianz does not refund any of the premium for such cancellations.
However, the complaint claims that customers who cancel before departure deserve full refunds for the post-departure features of the policies, because Allianz has not yet incurred any potential liability for losses and therefore has not earned the premiums for these parts of the insurance bundle. State laws in California and Tennessee specifically require refunds for insurance policies when no risk is ever incurred.
The complaint also claims that, because the policies are made of bundles of different kinds of coverage, the premiums paid for pre- and post-departure coverage should be easily separable to facilitate these refunds.Article Type: Lawsuit