Aspen Claims Service

Unlicensed Company Pays $350K Fine After Adjusting Thousands Of Claims In Texas

 Wednesday, June 8, 2022

 Repairer Driven News

A California company has entered into a consent order with the Texas Department of Insurance (TDI) after adjusting thousands of property and casualty insurance claims on Texas risks without a required state license.

Under the terms of the order, American Claims Management (ACM) has agreed to take corrective measures and to pay a $350,000 fine.

In turn, TDI has suspended ACM’s third-party administrator (TPA) authority, subject to a two-year probation period, and granted ACM’s application for an all-lines adjuster license, subject to a concurrent two-year probated suspension.

TDI said it has opened investigations on the insurance companies that contracted with ACM, to determine whether claims were timely and properly handled by those companies.

ACM ‘represents it is unaware of any direct harm to Texas consumers caused by its lack of an adjuster license, use of unlicensed persons to adjust claims, and its misleading advertising,’ the order states. The misleading advertising allegation stems from services offered on ACM’s website.