A new proposed USAA class action lawsuit accuses the United Services Automobile Association of unfairly reserving real membership in the insurance company for officer class customers. The 42-page USAA membership lawsuit says that privileges and benefits are available to consumers with direct and familial connections to the US military or military-related government agencies. However, two-thirds of the defendants’ customers show fake member status.
What is USAA Membership Lawsuit Complaint?
Here is a complete complaint document. According to this, USAA promotes and sells automobiles, home products, and insurance products to those who have membership of USAA or have familial connections with the United States military.
Almost two-thirds of customers have false, unfair, and deceptive promises. USAA reserves real membership and privileges of real membership customers and provides to fake or nominal ones.
Benefits of Real USAA members
The officer class members receive the annual allocation, which totals $10,409,661,922. The USAA provides these funds to real members upon termination. In just 2022, the total termination payments were $350 million, while the annual distribution to real members reached $343 million.
The result of these unfair, deceptive promises and systematically breached contracts is that plaintiffs have similar situations and continue to be denied USAA membership benefits like annual allocations and distributions.
So, the plaintiffs bring this USAA membership lawsuit on behalf of themselves and other similar persons seeking monetary damages and other relief on behalf of the proposed classes.
In the past, a person who purchased a USAA policy made the purchase a USAA member. The company was unable to disclose the non-officer customers, who had associate member status and came with no ownership rights or any of the benefits of real USAA membership.
Clarification of USAA Membership Lawsuit
The insurer needs clarification on the language for nominal members who are eligible as members. The lawsuit alleges that the designed insurance contacts the premise and reinforces the belief that nominal members are members.
The case says the purchaser is a member of USSA and eligible for annual allocations. As per the lawsuit, unfair and deceptive tactics lead enlisted personnel and their family members to believe they are full blows USAA members to ownership benefits.
According to the lawsuit, the actual USAA members enjoy financial benefits on which annual allocations to each member’s account as the unassigned policyholder surplus of more than $10.4 billion and annual distributions from them on 31st December 2023.
The real members receive insurance from USAA directly, while so-called second-class customers allegedly receive it from a subsidiary. The value and meal profit from these companies flow directly to USAA and are shared with USAA members annually.
According to this lawsuit complaint, neither USAA nor its subsidiary insurance companies allocate or distribute any policyholder surplus to nominal members.
If we summarize this lawsuit, the USAA enlists personal and military family members, and some withhold information about their non-member status, misleading them into thinking they are the same USAA members with the same rights and privileges as real ones.