Jason R. Schultz's Blog

Progressive Investigated by Georgia Insurance Commissioner

The Georgia insurance Commissioner, John Oxendine, is now involved in the latest Progressive Insurance Company's scandel over allegations of invasion of privacy, fraud and other misdeeds. Hopefully, this will help Progressive and other insurance companies remember that they have fiduciary duties towards thier own insured's, that is, a duty to place their insured's interests as highly as their own. We will see. By D.L. BENNETT The Atlanta Journal-Constitution Published on: 08/30/07 Georgia's insurance commissioner has begun an investigation of Progressive Insurance for allegedly sending private investigators into a church confessional to spy on a couple who had filed suit against the company. John W. Oxendine ordered a market conduct examination into recent allegations of invasion of privacy, fraud and other misdeeds by Progressive Insurance Co. Oxendine has ordered the company to preserve "all documents, data and tangible things related to all losses or claims incurred or reported involving or related to Georgia policyholders since Jan. 1, 2003." "Georgia policyholders should expect an open and honest relationship with their insurance company," Oxendine said. "In order to assure truthfulness within the industry, when we hear of possible wrongdoing, we have to act promptly to protect the consumer." The two private detectives allegedly posed as a married couple wanting to join the church. They talked their way into a private confessional at a member's home and recorded potentially embarrassing details from several people there. The investigators were looking into Bill and Leandra Pitts, a Henry County couple who were involved in a car crash and later sued Progressive. The company's president issued an apology on Progressive's website last week. Progressive has 10 days to request a hearing. Company spokesman Shawn Fergus could not be reached for comment late Thursday.

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