Software Helps Insurers Lowball Claims, Report Says

Law360, New York (June 4, 2012, 8:20 PM EDT) -- The Consumer Federation of America released a report Monday detailing how insurance companies can easily manipulate computer programs to underpay injury claims by millions of dollars, calling on regulators to probe potential abuses.

Allstate Insurance Co. has already come under fire over its use of Computer Sciences Corp.'s claims-handling software program Colossus. An 18-month investigation by the National Association of Insurance Commissioners into Allstate's use of the software led in 2010 to a $10 million settlement with regulators, though the NAIC didn't uncover a systematic underpayment...
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