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Lessons learned from Go Maps and Topa settlement

On Behalf of | Nov 2, 2023 | Insurance Law

In recent news, the California Department of Insurance settled cases with Go Maps and their underwriter, Topa Insurance Company. Go Maps is an “insurtech” company that utilized an app-based platform to sell and manage insurance through Topa. These apps make it easier for consumers to get insurance, cutting down on the usual insurance hassles.

However, the Go Maps and Topa case reminds us that innovation comes with a duty. While we appreciate these innovations, it is vital for these companies to follow the rules and protect consumers.

The violations

The California Department of Insurance identified several violations committed by Go Maps and Topa, including:

  • Failure to pay claims within the legally required 30 days, causing significant delays for affected consumers.
  • Not acknowledging claims, providing forms or initiating investigations within the stipulated 15-day timeframe.
  • Inadequate response to consumer inquiries about their claims within 15 days.
  • Failure to accept or deny claims within 40 days.
  • The hiring of an unlicensed insurance adjusting firm to handle claims.

What happened signifies a major shift in how we handle insurance. It shows that the digital era should not be a place where we forget consumer rights.

Consumer protection is top priority

The key lesson here is that, no matter how tech-savvy insurance becomes, consumers should always come first. When people buy insurance, they trust these companies to help them when they need it. Delays in claims or not responding to consumers promptly can cause serious problems for policyholders.

The focus from Insurance Commissioner Ricardo Lara is important. When companies break the rules meant to protect consumers, there should be consequences. These settlements show that regulators will step in to make sure they look after consumers and companies do what they promise.

Innovation and oversight

The Go Maps and Topa settlements remind us that we should balance innovation with consumer protection. As technology keeps changing the insurance game, our commitment to safeguarding policyholders still is strong. This case highlights the fine line between innovation and consumer rights, stressing the importance of responsible and ethical practices based on our laws and rules in the evolving insurance world.