Auto Insurance Coverages Changed without my authorization

[Paws]

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Before I go further with fighting my auto insurance company, I wanted to get a little more information. I live in Texas. I purchased auto insurance from USAA several years ago. In December last year, I split my policy from my husbands as we were getting divorced. At the this time (and on all policy renewals prior), my policy offered a death benefit under the PI coverage for any covered person who dies in an auto accident while wearing a seat belt. On May 17, 2007 my insurance company sent me my renewal papers for my renewal date of June 22, 2007. I did not review them since I had made no changes to my policy. Never in a million years would I have thought that any insurance company could reduce my benefits without my authorization. On December 1, 2007 my daughter was killed in an accident while wearing her seat belt. When I questioned USAA about the death benefit, they told me that it had been deleted from my policy. I asked them how they could do that without my authorization. They said that they petitioned the state of Texas and were given the right by Texas to remove this benefit from all of their policies. When asked for documentation (proof) of this, they said that they could not provide it to me. I was told by the insurance company that as long as they notified me in writing before my renewal that they could reduce my benefits. I'm sorry, but I can't just take their word that I can no longer collect the death benefit. What about those individuals who do not have any other insurance and are soley relying on that to cover funeral expenses?
(by the way, she was only driving an $8000 vehicle, so the claim is not excessive)
Any response will be greatly appreciated.
Thank You,
Virginia W

 

[FindUSAA_Expert]

I too lost a daughter. The pain never goes away. But in about 5 years it will get better. Your tragedy is simply a common event for all insurers who only care about how much it will cost them in the end. All insurance companies through time and extensive litigation have learned how to game the system and the Commissioners of Insurance through out the country are simply helping them along the way. You need a lawyer. Your situation is very complicated, because of the death and the divorce and USAA is not USAA -CIC. One is an unincorporated reciprocal interinsurance exchange and the other is owned by USAA and is an incorporated insurance Company.
In the case of USAA the distinction is huge.

1? - Was your husband a USAA subscriber?

2? - Is you daughter his dependent and is she insured on his insurance.

My guess is that you are now insured by USAA's wholly owned subsidiary USAA -CIC

Find a lawyer who has sued USAA and won. USAA is not your friend and will do everything to defeat you. Believe me when I say this - Insurers are in it for the money. Once you pay you premium the money is "theirs" and once you made a claim you became the enemy and the problem.

All state laws are different on the issue of notice and no insurance company is to be trusted in a death accident. You are now in an adversarial relationship with your insurer. You need an attorney. Do not contact USAA again without counsel. Everything you say can and will be used against you in a court of law if it will allow them to avoid paying a legitimate claim.

 

[Paws]

My ex-husband is a USAA member through his father. His father is retired Air Force. I became a member when I married my ex. When we divorced, I was able to keep my membership. My daughter (not his daughter) became a member because of my membership.

I have demanded from USAA information supporting their claim that the State of Texas authorized them to make these changes. They told me that they could/would not provide me with that information.

 

[FindUSAA_Expert]

You are insured by USAA CIC.

You are not insured by the same USAA that insured your former father -in-law. You are not a member of the reciprocal and have no rights of ownership. In fact your father-in-law and other members of the reciprocal own USAA-CIC and make money off selling their own dependents insurance. Most USAA subscribers don't know what a URIE is and how it is supposed to operate.

Please consult an attorney in your home town. Your case is a case for an expert on Texas Insurance Law. The law in most states requires notice of changes to a policy of insurance must be in writing and clearly explained.