Friday, July 9, 2010

Georgia Court of Appeals allows class action against insurer to proceed

As reported in the Fulton County Daily Report, the Georgia Court of Appeals has upheld a trial court's order allowing a class action to proceed against Resource Life Insurance Company of Chicago.  The insurance company, which issued credit-protection insurance to purchasers of automobiles who financed their vehicles, has been accused of failing to refund unearned premiums in cases where the vehicles were paid off early or were wrecked and therefore the loans were paid off by other insurance.  The case will now proceed in Muscogee County Superior Court.

Under Georgia law, insurers are generally required to refund any premiums paid for insurance coverage that is not "earned."  For example, if an automobile liability policy is purchased for and paid for a year, and the car is wrecked or sold after six months such that the insurance is no longer effective, the insurer must usually refund that part of the premium paid for the six months that the insurance will no be in force.  Unfortunately, insurers sometimes fail to do so, either through faulty accounting practices or simply through illegal policies prohibiting cancellation or refunds in such situations.

The attorneys of Turkheimer & Hadden applaud the actions of the plaintiff and her attorneys in holding this insurer accountable.  If you have any questions about insurance coverage or other related issues, our attorneys have significant experience both representing and opposing insurance companies and will be glad to speak with you.  Please contact Stefan Turkheimer or John Hadden at 404-890-7200.

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