Beacon Hit With Class Suit Over Ignored Insurance Claims

Law360, New York (June 6, 2011, 7:09 PM EDT) -- A Louisiana woman filed a putative class action in Florida federal court on Monday accusing automotive insurer Beacon Industries Worldwide Inc. of systematically decreasing and failing to pay policyholders’ claims made under deficiency waiver contracts.

Lacey Hingle Boudreaux alleges Beacon invokes improper and unauthorized deductions or adjustments to reduce the outstanding balance on claims submitted under the guaranteed automobile protection contracts.

The company wrongfully deducted GAP cancellation fees, money from third-party insurers, funds from extended vehicle warranties, and other fees in violation of the contracts, Boudreaux...
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