New York, NY: A bad faith insurance class action lawsuit has been filed against Farmers Insurance Group Inc, alleging the company fails to fully reimburse policyholders for medical expenses.
The lawsuit, Morawski et al. v. Farmers Texas County Mutual Insurance Co. et al., Case No. 13-cv-00102, U.S. District Court for the Eastern District of Texas, filed by plaintiff Theodore Morawski, alleges Farmers Insurance intentionally shortchanges policyholders who have private health insurance by only paying for medical claims their private insurers won’t cover instead of reimbursing policyholders for all incurred medical costs.
“The Farmers Insurance Group pays only the lesser of the ‘paid’ medical bill, in direct violation of the insurance contract, and is thereby trying to benefit from a prudent insured who has private health coverage,” the lawsuit states.
The Farmers class action lawsuit is brought on behalf of all Farmers Insurance automobile policyholders in Texas who carried personal injury protection (PIP) benefits and or medical payment (Med-Pay) benefits and who were underpaid for medical expenses.