AGA, Jefferson, or BCS Event or Travel Insurance Surcharge California Class Action

When a person buys an airline or event ticket online, a late step in the process may be an offer of insurance. The complaint for this class action alleges that AGA Service Co., which does business as Allianz Global Assistance (AGA), Jefferson Insurance Company, and BCS Insurance Company “secretly and unfairly charge unsuspecting consumers additional fees, on top the calculated premium, without disclosing that they are charging those fees.”

California requires that insurers get approval of their rates and to make those rates clear to customers. Other rules apply if an insurer wants to charge an extra fee for services. The complaint says that “producers must identify any fees they charge separately from the premium and in sufficient detail for consumers to understand the fees and for there to be a determination that the fees are in compliance with the insurance laws and regulations.”

How do AGA, Jefferson, and BCS justify the extra fees they charge? The complaint says they “represent[] that the fees are for a supposed assistance service. That service purports to allow insureds to spend time on the telephone with AGA’s customer service representatives to request information about various topics, such as directions, weather, restaurants, hotels, new travel arrangements, and possibly medical needs.”

However, the complaint says, the purchasers of insurance are not actually aware of this service and don’t want it. What they see online is an offer that “is plainly described as ‘Ticket Insurance’ and ‘Event Ticket Insurance for an additional $[amount] per ticket.’” In reality, the complaint claims, the quoted amount includes both insurance and the additional service.

For example, if a price of $9 is quoted, the price may include $7.53 for the insurance and $1.47 for the assistance service. According to the complaint, “[t]he ‘assistance’ service is essentially a toll-free service line to customer service representatives.” While there may be a hyperlink to a “Plan details and disclosures” page, the complaint says consumers are likely to go through the transaction without knowing they have paid extra for access to a toll-free service line.

Two classes have been defined for this action.

The Event Ticket Insurance Class is all natural persons who bought event ticket insurance policies from AGA, Jefferson, or BCS while living in California, between September 4, 2016 and the present, excluding those who used AGA’s assistance services.

The Trip Insurance Class is all natural persons who bought trip, travel, or flight insurance policies from AGA, Jefferson, or BCS while living in California, between September 4, 2016 and the present, excluding those who used AGA’s assistance services.

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

AGA, Jefferson, or BCS Event or Travel Insurance Surcharge California Complaint

September 4, 2020

When a person buys an airline or event ticket online, a late step in the process may be an offer of insurance. The complaint for this class action alleges that AGA Service Co., which does business as Allianz Global Assistance (AGA), Jefferson Insurance Company, and BCS Insurance Company “secretly and unfairly charge unsuspecting consumers additional fees, on top the calculated premium, without disclosing that they are charging those fees.”

AGA, Jefferson, or BCS Event or Travel Insurance Surcharge California Complaint

Case Event History

AGA, Jefferson, or BCS Event or Travel Insurance Surcharge California Complaint

September 4, 2020

When a person buys an airline or event ticket online, a late step in the process may be an offer of insurance. The complaint for this class action alleges that AGA Service Co., which does business as Allianz Global Assistance (AGA), Jefferson Insurance Company, and BCS Insurance Company “secretly and unfairly charge unsuspecting consumers additional fees, on top the calculated premium, without disclosing that they are charging those fees.”

AGA, Jefferson, or BCS Event or Travel Insurance Surcharge California Complaint
Tags: Charges for Services Not Requested, Deceptive Insurance Practices, Insurance, Travel Insurance