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Grange Insurance Company has proposed a nationwide bad faith class action settlement for Grange insureds who submitted UM/UIM bodily injury claims, pursuant to Grange auto policies between January 1, 1999 and December 12, 2007. Those affected must submit claims for consideration by April 3, 2008.

The lawsuit against Grange alleges that Grange underpaid people for UM/UIM bodily injury claims by using a computer program known as COLOSSUS, or other programs known as Claims Outcome Advisor and InjuryIQ. Specifically, Grange underpaid UM/UIM bodily injury claims through the use of COLOSSUS and conspired with others to reduce the amounts paid for general damages for bodily injury claims submitted under the UM/UIM portion of auto policies.

Bad faith actions like this one reveal the insurance industry’s continued attempts to take money away from policyholders and put it into the pockets of the shareholders. The victims in this case are Grange’s own policyholders, who paid premiums to Grange. Grange owes a duty of good faith to policyholders and should not work against them when they seek fair compensation for bodily injuries.

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