Strawn v. Farmers Insurance Co. of Oregon is a class action that challenged the insurer’s use of automated bill review systems to determine the reasonableness of medical claims submitted under the Personal Injury Protection (PIP) coverage of automobile policies. The plaintiff alleged that Farmers had promised to pay the “reasonable” cost of covered medical services, but had failed to do so. In May 2011, the Supreme Court of the State of Oregon ruled that a class could ... Keep Reading »
Claims Software
NAIC Hears Renewed Calls for Regulation of Automated Claims Tools
On December 1, 2012, for the second time this year, the Market Regulation and Consumer Affairs (D) Committee of the National Association of Insurance Commissioners heard presentations about insurers’ use of computerized systems to assist in the adjustment of bodily injury and property claims. The hearing concentrated on three products: Computer Science Corporation’s “Colossus,” ISO’s “Claims Outcome Advisor” and Xactware Solutions, Inc.’s “Xactimate.” The ... Keep Reading »