American Family Insurance has been raking in the profits, but a recent bad faith lawsuit against American Family shows how accepting customers' premiums but not their claims can get a car insurer in trouble after a car accident.
American Family now has a $3,000,000 bad faith verdict against it after a jury found in favor of a University professor who's car insurance claim for 85% of his lost wages was denied. The man was involved in a car accident and sustained a brain injury and severely injured arm. Evidence showed American Family was pressuring claims adjusters working on car accidents to reduce personal injury payments. Evidence also showed that American Family was trying to reduce car accident payments by 28%. The jury found that American Family willfully and wantonly denied the professor's claim for the car accident.
Wisconsin Personal Injury Attorney