GAMESA

The insured has submitted an inquiry to your office asking why his auto rates increased $200.00. The inquiry does not advise if he has spoken with his agent regarding his concerns. We have reviewed the auto insurance policy to ensure that the rate change was not related to any rating...

inaccuracies.  Our review of the policy found all rating criteria accurate and charges appropriate and can advise the following.   At this time we would like to take the opportunity to explain what the Premier Discount is and how it relates to an insured’s auto insurance policy through the MSIC.  The Premier Discount is a discount which uses a person’s “insurance score” to determine eligibility for the discount to be applied to their policy.   A credit-based insurance score, often referred to as an insurance score, is a snapshot of the policyholder’s insurance risk at a particular point in time and even though insurance scores and credit scores are both derived from information on their credit report, the two scores are completely different.   Insurance scores are calculated through a proprietary-scoring model that uses an objective mathematical formula that assigns weighted points to different credit characteristics and behaviors that have proven predictive of future loss experience.  A credit score is used by lenders to predict how likely you are to repay a loan. Since these scores predict completely different types of risk, they do not have any correlation to each other.  Therefore it is possible to have a higher credit score than your insurance score. We have been using insurance scoring for well over 10 years.  It was initially filed, along with all our rates and rules with the State of Michigan Department of Insurance and Financial Services.  The Fair Credit Reporting Act (FICO) specifically allows the use of credit information for insurance purposes.   [redacted] is the vendor contracted by the company to apply the scoring model created by the Fair Isaac Corporation (FICO) to calculate insurance scores. This model is called the FICO Insurance Score (formally titled Experian/Fair Isaac Insurance Score) Standard Greater than Minimum Limits (SG) Model. FICO’s scoring model was developed specifically for the insurance industry using the Experian credit data.  In order to determine the correct Premier Discount level which is applicable to the policy, a request for a driver’s insurance score is submitted to [redacted]. In response, [redacted] draws information from the person’s Experian credit report and calculates a driver’s three digit insurance score using the FICO model and sends the results to the company along with the top four factors having the greatest negative effect on the score.   These reason factors are listed on the Renewal Declaration Certificate using a two-digit coding system and are called Score Factor Codes.  The three Score Factors we received from [redacted] for the most recent score on file in this case are 62, 77and 53.  The previous score received showed reason code of 62 and 53. Enclosed with the Renewal Declaration Certificate that the insured received is the Premier Discount and Fair Credit Reporting Act Notifications which explains the meaning for each code listed.  It is important to note that the company does not receive any Experian credit reporting information or any other information from [redacted] other than the insurance score and the Score Factor Codes just discussed.  We do not receive specific credit reporting information, so we can only provide the Score Factor Codes, the date that the most recent insurance score was received and the Premier Discount Level indicator for which the score qualified.  As our Premier Discount and Fair Credit Reporting Act Notifications indicates, the insured may request a re-evaluation of his insurance scores up once in a calendar year.   Our records indicate that the insurance score is ordered (every 3 years) through [redacted].  In August 2013 and it was returned as 758 which equated to a Premier Score of 9.  However, to lessen the impact of the discount being reduced, we averaged the current and prior Actual scores 772 + 758 = 1530÷ 2 = Rating Score 765 which equated to a Premier Score of 10. In July 2016 the score was ordered and returned as 754 which equated to a Premier Score of 8. Again we averaged the current and prior Actual scores 758 + 754 =1512 ÷ 2 = 756 which equated to Premier Score 8 which caused a decrease in the discount applied thus causing an increase in the premium charged. If the insured feels that the recent insurance score and reason code are inaccurate, on the last page of the Renewal Declaration Certificate, it explains how the insured can obtain a copy of the insurance scoring report from [redacted] and review it for accuracy.  This is the free consumer report that is referenced in the Premier Discount and Fair Credit Reporting Act Notifications.  If, after receiving and reviewing the insurance scoring report from [redacted], the person remains concerned about the insurance score and the reason codes listed on the policy renewal declaration certificate, the next step we recommend is to contact Experian and obtain an actual copy of the Experian credit report used by [redacted] as the basis for calculating the insurance score.  Once the Experian credit report is received it should be reviewed for accuracy.  If any inaccurate information is found within the Experian credit report the insured should contact Experian to have the credit report corrected.  Once Experian sends written confirmation to insured that the credit report has been corrected, he should contact the company through his agent or through our call center and request to have the insurance score re-ordered through [redacted].  It is important to note that we must use the most recent insurance score on file regardless of whether the score goes up and qualifies for a higher Premier Discount or down for a possibly lower discount.  However if the Experian credit report is accurate but the [redacted] insurance scoring report does not appear to reflect what was provided in the Experian credit report, he should then contact [redacted] and dispute the information contained in the [redacted] insurance scoring report.  Any adjustments made to the insurance score by [redacted] should be communicated to the company so the appropriate Premier Discount level can be applied.   Unfortunately, if after reviewing the [redacted] insurance scoring report and the Experian credit report no errors are discovered, we must use the most recent insurance score we have on file.  As a reminder, the highest score obtained for any driver on the policy is used in establishing qualification for the Premier Discount.   We want our insured that although his insurance score does not qualify for the highest Premier Discount available, he is still receiving a substantial discount. It is important to note that scoring can change over a period of time and as mentioned earlier these scores are reviewed every three years.

Update: member has been contacted and a resolution was reached: an additional $50 AAA Dollars has been given to the member.  Thank you!

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID 10708883, and find that this resolution is satisfactory to me.
Thank you for assisting me in resolving this matter.Sincerely, 
Irene K[redacted]

I certainly apologize for the trouble but as we both know neither one of us can control the internet provider and what takes place with their service. After our telephone conversation today I have asked someone from our cancelation department to call you and arrange for the system to be...

disconnected and the monitoring to stop on the alarm system and your contract to be canceled. If there is anything else I can do to help you please don't hesitate to contact me. Roger S[redacted]PresidentAlert Alarm Hawaii

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID 11175711, and have determined that this proposed action would not resolve my complaint.  For your reference, details of why I am rejecting this response appear below:
I was charged and paid what AAA quoted me to pay and prepaid for approximately 5 months if prorated.  I cancelled 89 corvette, so it was only insured for 20 days.  I cancelled 96 Jeep after a couple months.  I never received a refund because a proper prorated credit for when I  was insured was never calculated.   Amount paid divided by number of days insured.
Regards,
[redacted]

Mr. [redacted]
I would like to clarify that every security system alarm panel requires a direct 110 power source to operate and maintain the system and that includes hard wired systems and wireless systems. In addition each security panel has a built in battery backup in the event the power is cut or goes...

out from [redacted]. When the power is lost to an alarm panel the Alert Alarm call center receives a signal that the power has been lost to your security system and we then call you to verify that everything is ok or that we should dispatch the police.
When talking about a wireless system this also requires a 110 power source but the wireless phrase simply means that the sensors, motion detectors and other auxiliary equipment can transmit their signals to the powered alarm panel wirelessly. I hope this helps you understand the systems? I have asked one of our specialists (Alex) to reach out to you should you require any further information.
Roger S[redacted]
President
Alert Alarm [redacted]

Good Day and thank you for the opportunity to respond to our policyholder’s concerns.   After reviewing the file along with the recorded voicemails from our policyholder, we can advise as to the following information. Our policyholder has been insured with us since 09/05/2012. She has policy...

renewals every 6 months. Her last policy renewal was 09/05/16 to 03/05/17. Her monthly payments were approximately $50.08.  There were two factors that increased her auto policy premium. The first factor was our policyholder contacted her insurance agency on 01/09/17 and substituted the vehicle on her policy. This change resulted in premium increase of $83.54. Documents were generated and mailed to our policyholder advising of the change and premium for the policy. There was only one payment remaining for the rest of the policy term. So the complete balance would be collected on 02/05/17 in order to pay the policy in full.   On 01/29/17 our policyholder contacted our agent by email and advised that she had several concerns with her car insurance. She had never received copy of her current plan. The most recent bill she received is for $133.00 and needs to be paid by 02/05/17. She did not understand what the bill was for as she had been on a monthly billing plan and she expected that plan to continue. She asked for a breakdown of coverage along with a corrected bill. She advised that she could not afford the payment with less than a week’s notice Our agent emailed the policyholder back and advised that the bill she received for $133.00 was correct as her monthly bill amount prior to the change was $50.08, when the change was made on the policy the premium increased by $83.54, so the total due for February would be $133.62.   On 01/30/17 our policyholder emailed the agent back and asked was that all the information he had to say as he did not issue her an apology. The agent emailed the policyholder back and advised that he wanted to get the documents she was missing as well as review the payment schedule to see if there is anything that can be done regarding the bill that was owed.     On 01/31/17 our policyholder emailed the agent and advised she still had questions regarding the upcoming renewal amount, there were two premiums listed. One premium was $603.29 and the other was $578.22, which included a savings of $25.07 for paid in full discount. There was a charge for $174.85 and she was unaware what that amount was for and would like and explanation and she wanted to know if he had any suggestions to split up the final payment of $133.00 as she could not afford to make that full payment in 5 days.  She further voiced her concerns about making a $50.00 payment the prior month and not receiving a bank credit for that payment and for the agent’s lack of consideration and communication. The agent emailed her back and advised that he could not spread the payment out, but he could delay it for her by changing the deduction date which would allow her more time to make the payment. He advised about the renewal premium of $603.29 and explained that if policy was paid in full for six months by paying $578.22, the additional discount of $25.07 that she could save. He further advised that when the Aveo was added to the policy it added $174.85, when the Montana was removed from the policy it credited $91.31 to the policy. So the additional cost of the Aveo from 01/09/17 to 03/05/17 was $83.54.  So the money paid in January comes off the balance due. The reason the bill was $133.62 comes from the regular $50.08 payment plus the $83.54 for the change in vehicle.   The agent did apologize that she received the bill late. Our records indicate that the bill was mailed out on 01/21/17. We are unsure why it took so long for the bill to arrive to her, cutting down the amount of days in which she would have to make the payment.   The policyholder emailed the agent back and advised that the information was helpful, but not enough. She needs as much time as possible to pay the balance.  Making $50.08 payment on 02/05/17 and balance of $83.54 on 02/28/17 is acceptable. However, she will not agree to pay $25.07 more in premium just because she does not make the payment in full. She advised the agent if he could not make the entire premium payment $578.22 as quoted with her making monthly payments, then she will change insurance companies.  She advised that she was at work and she could not waste any more time. If he is unable to remove the $25.07 from the premium then she has nothing more to say. The agent emailed her back and apologized that he could not apply the rate of $578.22 unless she made the 6 month policy payment in full. He explained that the paid in full is an additional discount on the policy. The true policy premium is $603.29. He further advised that if he could apply the discount for her, he would. Unfortunately there is no way to apply the discount without the policy being paid in full.   The deduction date was changed to 28th of every month. So the balance of $133.62 was scheduled to withdraw on 02/28/17. Since this payments comes directly from a bank checking account, the bank is notified 3-5 days prior to the deduction date that a payment will be taken out. Once the notice is sent to the bank, there is nothing that can be done on our end to stop the payment. The policyholder would have to contact the bank and stop the payment or reject the transaction.   On 02/25/17 policyholder emailed the agent and requested that the policy be canceled. The agent was out of the office as it was a Saturday, when the agent returned to the office on Monday, 02/27/17 he emailed the policyholder to inquire what date she would like the policy canceled effective. Policyholder left a voicemail asking that the policy be canceled on 02/25/17 as she has already found coverage with another carrier and she notified the bank that no authorizations are permitted to take any money out of her account for the auto insurance policy with us. Agent sent manual amendment to cancel policy effective 02/25/17. The eft bank notice was sent on 02/24/17. When the policyholder called the payment request had already been issued and it was too late to stop the payment from being withdrawn from her account as the notice was sent prior to her request.   On 02/28/17 our policyholder left voice message for another agent to advise she had canceled her auto policy and therefore payment should not have come out of her account. Agent tried to contact her back, no answer left voice message. Policyholder than emailed the agent about the money coming out of her account. Agent emailed the policyholder back to advise there was not enough time to stop the payment because the request had already been sent to the bank prior to her requesting the policy be canceled.   The last payment received on this policy was for $50.08 on 01/05/17. There was a policy change on 01/09/17 and additional premium of $83.54 was added to the policy. The policy balance was $133.02 due on 02/28/17, once the cancellation was process for 02/25/17, the balance decreased by $25.44. Our policyholder will receive a refund in the amount of $25.44 in the same form in which her final payment was received. In order to afford her coverage until 02/25/17, the premium was $108.18.   The second factor was an overall base rate increase that we (AAA) have implemented effective 02/01/17.  Our rules and rates are filed with the State of Michigan and must be applied uniformly and consistently throughout the state.   After careful review, we can advise that the payment was owed on the policy and therefore we will not be issuing a refund for the full premium or the $75.00 in late charges she incurred. Our policyholder was notified in January about the premium owing and had active coverage with us until 02/25/17. On the date she requested policy to be canceled and for the payment to not withdraw from her account, was not a working date for the agency and her request was handled the next business day on 02/27/17.   Thank you for the opportunity to review our policyholder’s concerns.

Dear Consumer,I apologize for the inconvenience this situation has caused. I have taken a look at you membership. I see that you did originally join online at AAA.com. When you purchased this membership you received an email confirmation stating all the information about the payment you just made....

Located on that email was a link to a digital copy of our handbook, that included the cancellation policy. As a show of good faith, I am going to cancel the membership with a full refund of $86.00. This refund will take 10-14 business days to process in our system. The payment will go back on the card that you originally paid with. Again I apologize for the inconvenience, and hope you have a wonderful Summer.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of why I am rejecting this response appear below:After reviewing the response from AAA...1. [redacted] NEVER called in and indicated there were changes made. I would like to be sent the actual receipts and documentation REQUIRED BY THE INSURANCE COMPANY that customers are to submit PRIOR TO CHANGES BEING MADE TO HOME OWNER'S POLICY. Those improvements were never made. NEITHER MY HUSBAND NOR MYSELF EVER CLAIMED THAT IMPROVEMENTS WERE MADE.2. The said "$238.50 check" was from the AUTO POLICY FROM THE CHANGES IN COVERAGE with the [redacted], the [redacted] and the [redacted]. NOT THE HOME OWNERS POLICY.3. [redacted] nor myself have EVER RECEIVED A check for $468.50.4. I am now requesting an AUDIT OF THE HISTORY OF BOTH OUR HOMEOWNERS AND AUTOMOBILE INSURANCE POLICIES BY A THIRD PARTY as the information contained in the answer from AAA is incorrect and there are many errors.[redacted] 9/12/2016Regards,
[redacted]

The member’s vehicle is a 2007 GMC Pick Up with 105,910 miles listed. The member was the third vehicle in a 4 car collision on 07/31/17. His vehicle suffered minor damage to the front and rear which totaled $2,802.76 not including labor and supplies. As of 10/11/17 he advised that he was not...

satisfied with repairs and was instructed to take his vehicle back to the collision shop so that they correct whatever issues he had. The member contacted our claim office on 01/19/18 saying he thinks there is a problem with his suspension. The collision shop had advised him it was additional work that he would have to pay for. 01/23/18 the claim examiner and his manager inspected the member’s vehicle. The examiner called the member to report his findings as the suspension pieces are worn out, the original factory parts stabilizer links have been broken for some time, holes are rusted thru and not clean where bushing would sit. It was also explained the left wheel bearing is not safe to drive (not loss related). The front bumper is rusted and is not an OEM however it is being replaced under warranty from the collision shop. As far as a list of parts replaced, the information is listed on the member’s estimate and if he does not have a copy he can always contact our claim examiner. The member is requesting that OEM parts be installed on his vehicle the right way with a professional like manner by another dealership he can trust. After reviewing the member policy we can inform that he does not carry the OEM coverage endorsement which is an optional coverage. Since the coverage is not on the policy we must refer to the policy conditions and policy language. Under PART V - CAR DAMAGE COVERAGES LIMITS OF LIABILITY Page 15 Limits of Liability Section 3c.   You agree with us that repair may include parts furnished by non-original equipment manufacturers. Sincerely, IRCR

OUR NORMAL PROCESS WHEN A NEW CLIENT IS SIGNING A CONTRACT FOR OUR SERVICES WE HAVE INSIDE ADMIN STAFF WHO EXPLAIN VIA TELEPHONE PRIOR TO SIGNING ANY CONTRACT A LIST OF QUESTIONS PERTAINING TO THE SPECIFICS OF THE CONTRACT AND ADVISING THAT THIS IS A 60 MONTH CONTRACT AND WE RECEIVE YOUR ACCEPTANCE...

PRIOR TO MOVING FORWARD. THIS PRACTISE IS INDEPENDANT OF ANYTHING SAID BY A SALES PERSON TO AVOID ANY CONFUSION OR MISUNDERSTANDING.
THE DAY YOU CALLED I WAS TIED UP IN MEETINGS AND ASKED SOMEONE TO CALL YOU IMMEEDIATLY TO DISCUSS YOUR CONCERNS AND SEE WHAT WE COULD DO TO HELP YOU OUT. IT WAS MY UNDERSTANDING [redacted] DID CALL YOU AND SPOKE IN DETAIL WITH YOU ABOUT YOUR SITUATION AND THE NEW BUSINESS YOU HAVE RECENTLY STARTED AND YOUR UNCERTANITY IF YOU COULD AFFORD THE MONTHLY COSTS OF THE ALARM SERVICE. AS RESULT WE AGREED WITH YOU TO SUSPEND YOUR SERVICE FOR 6 MONTHS WITH NO COSTS TO YOU AND NO EXTENTION TO YOUR CONTRACT. AT THE END OF THE SIX MONTHS WE WOULD AGAIN EVALUATE YOUR SITUATION AND MAKE ANY ADJUSTMENTS NEEDED. WE HAVE TRIED HARD TO ACCOMODATE YOUR CONCERNS AND ISSUES.

Good Day. We are in the process of reviewing this matter and will be able to respond on or before July 12, 2016.  Thank you!

Aloha Mr. [redacted],
I just had a nice call with [redacted] regarding this complaint. I assured her we are cancelling any contract with Alert and restoring her [redacted] panel. I also let her know that we are in the process of investigation of [redacted]' sales tactics and he will either need...

further training or will be terminated for unethical sales practices, which we do not condone.
Thanks for being a forum to allow us to rectify these issues. Have a great weekend,
[redacted]

Good Day and thank you for the opportunity to respond to the Claimant’s concerns. We do understand that she is not in agreement with our response.We have reviewed the policy and we could not locate any information relative to a name change with respect to this policy. For the protection of our insureds, our company policy is to issue refund checks to the Principal Named Insured on the file or to the Estate of the Principal Named Insured. In order for us to issue a check in the Claimant’s name, we will need some official proof, such as a court order. As an alternative, we will issue a refund to the Mortgage Company to be placed in the escrow account. With respect to what happens to funds that are not refunded, we do not keep the money. We would keep the refund for 12 months, after this period the funds are sent to our Corporate Disbursements Department; from there the funds go to the State of Michigan Unclaimed Property.

Ms. [redacted] I certainly apologize for any inconvenience caused and I will have someone call you to give you credit for the balance owed on the contract. It is certainly disturbing that people did not call you back and I apologize for that but also wondering if you could remember who that...

person was in Alert so that I can correct the situation.  Roger S[redacted]PresidentAlert Alarm Hawaii

Ms. C[redacted]
We will and have always honored the three day cancelation process. I apologize in the delay for making this take place. I have reviewed your account and see that we have not charged you for anything so no credit is due. I will have someone from our cancelation department call you to...

complete the process and arrange for the removal of the equipment.
Should you need anything further please don't hesitate to call me.
Roger S[redacted]
President
Alert alarm Hawaii

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID 11235460, and have determined that this proposed action would not resolve my complaint.  For your reference, details of why I am rejecting this response appear below:
I find AAA's response unacceptable. Our premium has increased 70%. Seventy percent. Seven. Zero. An increase of that magnitude is neither fair nor justifiable despite AAA's best efforts. It is a pure money grab and an abusive one at that. As a loyal customer of AAA for roadside assistance, auto insurance and home insurance I do not expect to be treated so poorly. We have already paid two-thirds of this year's premium (already greater than last year's total premium.) I would ask that this is all we are charged for home insurance this year.
Regards,
[redacted]

Good Day and thank you for the opportunity to respond to [redacted] concerns. We are unable to write a check payable to [redacted] as we have not received sufficient...

documentation which shows her as the beneficiary of the estate for [redacted]. We do understand there was never an Estate opened for [redacted]. Our company policy is to issue refund checks to the Principal Named Insured on the file or to the Estate of the Principal Named Insured. We have issued checks under both names. We do understand that [redacted] has not been able to cash those checks. In order for us to issue a check with her name, we will need some official proof, such as a court order.We would like to thank you for the opportunity to address [redacted] concerns.

Mr. [redacted]
It is my understand that you are currently paying for our monitoring service only at $ 25.08 per month. Prior to our service call it is also my understanding that we clarified with you that there will be additional charges of $ 125.00 per hour minimum + parts to you prior to us...

scheduling the service call we completed and you accepted that as you don't have the maintenance coverage.
Please keep in mind that there are many things involved with a service call besides just the one minute you claim it took our technician. We have scheduling, order entry, billing, drive time to and from your location, technician costs and benefits.
I can certainly offer you additional services for an additional monthly fee that would include service, parts and repairs.
Roger S[redacted]
President
Alert Alarm Hawaii

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.
Alert Alarm requested the name of the individuals, time and date of incident.  I don't have the names of the individuals but we do have them on video along with their conversation.  My wife has the date and time on her phone "ring" application.  I will try to notify Alert Alarm.I guess I should be satisfied, however, as I viewed previous complaints, the concerns seem to be similar so I'm just concerned that this is standard practice.
Sincerely,
[redacted]