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Class action lawsuit filed against AARP for undisclosed charges

Aug 28, 2019
Shamis & Gentile, P.A.
class action lawsuits

A number of class action lawsuits were filed last year against AARP. It was alleged that AARP unethically and illegally collected commission fees from its consumers for gap insurance policies. However, the whole case is still in a pending condition in a federal court of Columbia.

Background of AARP

AARP is a non-profit and non-partisan membership organization. AARP serves the people who are 50 years of age or older. The organization has been marketing itself as the advocate for all the seniors. It has also stated its mission as empowering the people in choosing how to live as they start aging. Currently, it has around 40 million members.

Supplement insurance from AARP

AARP started off with their supplement insurance for helping out the old age people. The supplement insurance or the Medigap insurance helps in relieving out the burden of extra finance for the consumers. It covers some specific extra costs that none of the Medicare policies cover. As the name goes by, the gap insurance pays for the gaps in your coverage. The gap insurance is helpful in paying off the costs of deductibles, copays and several other expenses.

Allegations against AARP regarding supplemental or Medigap insurance

According to a report from Forbes, the allegations charged against AARP say that the company might have collected unethical and illegal premium commissions for its Medicare gap insurance. The allegations were charged by the accuser Helen Krukas. She also claims that the unethical fees that were charged by AARP were not even disclosed to the consumers. According to Helen, AARP used various deceptive practices and tools of manipulation for fooling out the consumers. The company has been alleged into paying an extra undisclosed commission of 4.95% for the supplemental insurance policies.

Various other allegations have also been filed against AARP where the organization was accused of acting illegally as an insurance broker or rather an agent. According to the plaintiff of the class action, AARP has purposely hidden the extra undisclosed commission. This resulted in the consumers paying much more than the actual fees for their supplemental insurance policies. It has also been brought up against the organization that AARP willfully never discloses their commission fee to all those new consumers who opts for Medicare gap insurance for the first time. The company claims that the consumers were being charged with 4.95% of commission fee on their gap insurance policy as a royalty fee. It will allow the consumers to use the intellectual property of AARP. However, the accuser claims that the commission fee is illegal in nature for soliciting all the members in purchasing the supplemental policies from AARP. The fee is paid directly to the company whenever a new policy is sold or an old policy is renewed. The accuser also argues that AARP does not function as a licensed insurance agent or a broker. So, it is very much illegal and unethical for the organization to charge a commission fee on their policies. AARP skillfully labels the collection of commission fee as royalty fee just for avoiding all kinds of regulatory oversight. It also helps the organization from paying taxes on the money it collects.

Helen Krukas represents the class action for all those senior citizens across the U.S. who purchased the policies from AARP and was also the victim of the alleged commission fee. If you are a victim of the undisclosed commission fee, you can contact Shamis & Gentile, P.A. for all sorts of legal help regarding the lawsuits.

Class Action Lawsuits against AARP

A number of class action lawsuits have been filed against the non-profit organization AARP. It has been alleged of its undisclosed and deceptive collection of commission fees. The lawsuits have been filed by all those consumers who also claim that they would not have opted for AARP’s Medicare gap insurance policy if they were well aware of the deceptive collection of commission fee under the name of royalty fee by the company. All those consumers who have hired a qualified and dignified attorney and also pursue the litigations against the company might be able to get something from the company for recouping the costs for the reimbursements. They might also receive money for the damages done by the company. Now, as the lawsuits are still pending, no one can actually declare the outcome of the class action.

In case you want to learn more about class action lawsuits against AARP or if you have any query regarding this, you can contact Shamis & Gentile, P.A.

Supplement Insurance Lawsuit against AARP is still continuing over charges undisclosed

Last year a class action lawsuit was filed against AARP over the allegations of the company having accrued commission fees in an illegal and deceptive manner for gap insurance policies. However, the case is still in a pending state, running inside a federal court belonging to the District of Columbia.

Allegations that have been filed against AARP related to supplemental insurance

According to an article released by Forbes magazine, it is alleged that the class action lawsuit filed against AARP is based on the company having collected illegal commissions that were for Medicare gap insurances. The plaintiffs name is Helen Krukas, who claims that the fees collected by AARP were not disclosed by the company to the consumers. Krukas further claims that AARP took the help of manipulative and deceptive practices in order to cajole the customers into paying 4.95% commission for these supplemental insurance policies that AARP has, without having disclosed them to the customers when they were signing up for them.

Apart from the allegation of the company having acted in an illegal manner, fronting to be a insurance broker, Krukas further states that these undisclosed fees might have resulted in customers having to pay more than what was necessary for the supplemental policies that they had signed up for with AARP.

The accusation has been made that AARP is in the habit of never disclosing the commission fee that it charges to the consumers who approach the organization to purchase gap insurances. This 4.97% commission fee that AARP collects is alleged to be claimed as a form of royalty that the organization charges, for allowing the insurers to take advantage of their intellectual property. Regardless, Krukas has claimed that this fee that AARP charges is illegal in nature and is done every time that the organization solicits its members into the Medigap policies that they offer. This fee allegedly is directly credited to AARP for every single Medigap policy that is renewed or sold.

Owing to the fact that AARP is not a licensed insurance broker or agent, this fee according to Krukas is illegal for the company to be charging of their customers, for every single policy that gets purchased through them. Krukas further argues that the company masterfully avoids regulatory oversight by claiming these commission fees to be royalty payment, while also being able to evade paying tax upon the money.

Things you need to know about AARP Supplemental Insurance

The supplemental insurance, also known as the Medigap Insurance, which AARP provides is a special type of policy that allows consumers to cover charges related to the miscellaneous out-of-pocket costs that these consumers might have to bear, ones which are not covered by standard Medicare policies. It helps relive their burden and take care of their medical bills in times of need. Quite clear by the name it bears, gap insurances are specifically designed to cover and pay for gaps in insurance policies. Deductibles, copays and other miscellaneous expenses are covered by gap insurance.

Who is AARP?

AARP is an organization that functions on nonpartisan, nonprofit and membership policies, created for people who are aged 50 or more. The marketing strategy of the company claims it to be an advocate of senior citizens, and their mission statement reads, ‘to empower people to choose, how they live as they age.’ The company enjoys a membership of approximately 40 million people.

Lawsuits against AARP

A large number of lawsuits by multiple people have been filed against the company, which alleges that AARP claims deceptive fees. Plaintiffs who are claiming that had they known about the hidden commission fees that AARP charges, they would not have purchased their supplemental insurance. It is they who have mostly filed these lawsuits against the organization. The consumers who have actually taken help of legal counsel and hired qualified attorneys to tackle their situation might be able to pursue litigation against the company and be able to claim their deserved share of money that had been spent on reimbursements. They might also be liable for compensation for punitive damages that they might have faced as a result of buying these supplemental insurance policies from AARP.

Enroll in your class action lawsuit investigation against AARP Medigap insurance

If you have in the past purchased a Medigap Insurance from AARP, and feel that the commission fees that you had been charged is unjust and illegal you can opt to file your own class action lawsuit against the company. Having purchased a Medigap Insurance in the past from the company, you are eligible to file such a lawsuit, and can start your own lawsuit investigations against AART for their Medigap insurance overcharge. Contact the eminent attorneys at Shamis & Gentile, P.A. and get the best professional help to enable you to get the compensation for these illegal fees that you have been charged.

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