Allianz to pay $1.5 million in Washington mental health claim case

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Allianz to pay $1.5 million in Washington mental health claim case
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WASHINGTON - Allianz (ETR: ALVG ) has agreed to a $1.5 million settlement with the state of Washington, addressing allegations that the insurer unfairly denied travel insurance claims related to mental health emergencies. The resolution, announced by Attorney General Ferguson today, comes after a complaint brought to light the company's practice of rejecting claims for conditions such as bipolar disorder, schizophrenia, and depressive disorders.

The settlement aims to rectify violations of the Consumer Protection Act, which were identified as unfair discrimination and ambiguous policy exclusions regarding mental health coverage. Under the terms of the consent decree, Allianz is obligated to provide $800,000 in restitution to customers who were impacted by the denied claims. Additionally, the company will cover $700,000 for the state's legal expenses and case management.

Moving forward, Allianz is required to eliminate the "Mental and Nervous Health Disorder" exclusion clause from their policies. This clause was the basis for the previous denial of claims and its removal is a significant part of the settlement agreement.

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