Travel insurance company to repay $1.5 million from AG lawsuit
OLYMPIA, Wash. - Washington Attorney General Bob Ferguson announced Wednesday that the world's largest insurance company must pay $1.5 million for discriminating against Washingtonians with mental or nervous health disorders.
According to AG Ferguson's civil rights lawsuit, Allianz, an international travel insurance company, denied claims made by 560 Washingtonians whose trips were disrupted by mental health events.
The AG's Office says Allianz promises to reimburse customers for trip cancelations caused by a "covered illness" or "medical condition," like a broken leg or heart attack, but not for individuals experiencing severe mental health events.
Allianz based these denials on a "Mental and Nervous Health Disorder" exclusion contained in its policies that was not adequately disclosed to its customers, according to AG Ferguson.
Washingtonians harmed by Allianz’s discrimination will soon receive full reimbursement for their travel losses and premiums, totaling approximately $800,000. Allianz will also pay around $700,000 to cover the cost of distributing the financial restitution and the costs of the AG’s Office investigation and litigation.
This resolution comes just before a trial that was set to begin on Wednesday, January 17.
The Washington State Office of the Insurance Commissioner ordered insurers to remove discriminatory mental health exclusions from their policies back in 2023, and the AG's Office says Allianz changed its policy after this order was made.
The AG's Office spoke on several instances of this mental health discrimination, including one with a Seattle woman who traveled abroad as part of a graduate school project. She returned home five days into the six-week trip after experiencing multiple panic attacks, saying Allianz did not cover her costs.
"I was shocked to find out Allianz did not provide coverage as I thought the policy covered travel costs associated with medical emergencies and it never occurred to me that a panic attack would not be considered a medical emergency," she wrote in her declaration. "Even though I had purchased travel insurance, I ended up having to pay thousands of dollars to change my travel plans. It took a real emotional toll on me at a time when I was already dealing with a mental health crisis."
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