News Releases

October 25, 2023: Alliance United Insurance To Pay $1.1 Million for Failing To Promptly Investigate Auto Accident Claims

Media Relations Division
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District Attorney George Gascon announced today that Alliance United Insurance, a Los Angeles-based company providing auto and casualty insurance services statewide, has agreed to pay $1.1 million for allegedly failing to efficiently investigate auto accident claims as required by law.

“Insurance companies are quick to collect premiums but also must be swift in investigating and processing claims,” District Attorney Gascón said. “Timely investigations are not just a courtesy; they are a legal and ethical duty. Delayed or inadequate investigations can have serious consequences, leaving victims without the support they need to recover from auto accidents.”

LADA was the lead agency in this investigation and prosecution and partnered with the Ventura County District Attorney’s Office. In addition to its main offices in L.A. County, Alliance had offices in Ventura.

Alliance United specializes in offering non-standard, high-risk auto policies. Many of its clients are from lower income and/or under-represented communities.

The civil lawsuit alleged that Alliance United frequently failed to respond promptly to consumers making auto insurance claims and make its coverage decisions within the legal timeframe.

Los Angeles County Superior Court Judge Armen Tamzarian signed the stipulated final judgment between prosecutors and Alliance United on Oct. 23. The settlement payment covers penalties and costs of the investigation.

Alliance United did not admit wrongdoing, but cooperated with prosecutors and is taking steps to correct the violations. The numerous practice changes include implementing improved training for employees handling claims.

The case was handled by the Consumer Protection Divisions of both district attorneys’ offices in conjunction with investigators from the California Department of Insurance.