GM, OnStar, and LexisNexis deny sharing personal data, telematics without customer permission  April 25th 2024

GM, OnStar, and LexisNexis deny sharing personal data, telematics without customer permission

General Motors, OnStar, and LexisNexis Risk Solutions have denied allegations made in a lawsuit filed by a Florida man that his personal vehicle data was collected and negatively affected an insurance quote he received.

The suit, which has been filed seeking class action certification, alleges the companies invaded Romeo Chicco’s privacy by compiling “erroneous reports of derogatory and negative driving information made without Plaintiff’s knowing consent.”

The lawsuit came on the heels of a New York Times investigation into similar allegations on which an article was published in March. Since then, the Times has reported that GM has said it will no longer sell driving data to third-party companies.

The lawsuit alleges LexisNexis knowingly and/or willfully violated the Fair Credit Reporting Act by failing to maintain accurate data on Chicco. All defendants are accused of violating the Florida Deceptive and Unfair Trade Practices Act and privacy law.

The defendants filed their response to Chicco’s complaint Monday.

“Defendants deny any and all liability under Plaintiff’s causes of action as alleged in the complaint,” the document states. “Further, defendants maintain that plaintiff is required to submit his claims to binding arbitration pursuant to an enforceable contract containing a valid arbitration provision that plaintiff accepted.

“As such, defendants expressly reserve their arbitration defenses and right to move to compel arbitration. Defendants expressly deny each and every allegation in the complaint that is not admitted, denied, or otherwise addressed.”

The answer to the complaint contends the court lacks subject matter jurisdiction over the claims made in the complaint based on the binding arbitration agreement.

The defendants added that a welcome email sent to Chicco by OnStar on Nov. 18, 2021 contained its terms and conditions and privacy statement, and mentioned data sharing with third parties, including usage-based insurers.

OnStar’s privacy statement concerning third-party business relationships is “neatly hidden on their website, and made inconspicuous through the downloading of mobile applications, at worst, does not grant OnStar or GM the right to furnish car driving data to Lexis and is ambiguous at best,” the complaint states. “This scheme is deceptive, unfair, and misleading to consumers.”

“Defendants admit that OnStar collects driving behavior data with customer consent,” the answer to the complaint states. “Defendants deny that plaintiff’s driving data was collected without his consent… Defendants deny that they distributed plaintiff’s telematics information without his consent.”

According to the document, GM’s records show that Chicco enrolled in OnStar services on Nov. 16, 2021, and certain services were active as of Jan. 11, 2024.

Car Companies Can Generate $1,600 Per Car In Future From Connected Car Services

Software Defined Vehicles will become and element of a Connected Living solution in future generating over 300+ monetization features for consumer

The evolution of mobile connectivity has accelerated at an unprecedented pace. From the foundational 2G that introduced cellular networks to the transformative 4G that revolutionized video streaming, each generation of mobile technology has brought profound changes. Now, with 5G, we are entering an era of "isolated connected solutions" such as 5G-enabled factories, campuses, and stadiums. But the future promises more—an interconnected world where everything from personal devices to city infrastructure is linked, creating what I envision as a seamless "connected living" where we will be connected at the personal, community, and city levels. Imagine a future where everything – and I mean everything – is connected, from personal devices to city infrastructure. In this interconnected world, even our cars will transform into vital nodes in a vast network.

State Farm® launches innovative program to assist drivers involved in collisions

With new Drive Safe & Save™ feature, Accident Assistance has never been easier

Accident Assistance

State Farm, a trusted leader in the insurance industry, has always been committed to enhancing driver safety. With the introduction of the new Accident Assistance feature to Drive Safe & Save they've taken that commitment to the next level.

The new Accident Assistance feature helps the driver when immediate next steps may seem unclear during the stressful moments following a collision. It will guide the driver through the next steps, including making sure everyone is safe, calling the authorities, arranging for a tow-truck if needed and helping get a claim started. In the event there is no response, and they are left unable to respond to outreach, a wellness check will be requested at the scene of the detected accident.

The early reviews are very positive. Customer surveys and interviews indicate how they felt supported, cared for and provided comfort and ease in a time of distress.

Full Press Release Here

FTC pushes forward with sweeping non-compete ban

Existing non-compete agreements also face the chop after landmark FTC vote

The Federal Trade Commission (FTC) has voted 3-2 to ban non-compete agreements, in a move expected to have ramifications for tens of millions of Americans.

Under the non-compete ban, employers will be restricted from using future non-competes. Existing agreements, except for those that apply to senior executives, will be voided.

The rule is expected to go into effect 120 days after it is published in the Federal Register.

Democratic FTC commissioners voted for the ban, while Republicans were against.

Republican Commissioner Melissa Holyoak argued that the final rule “exceeds congressional authorization and will likely not survive legal challenge.”

Rate increases slower for catastrophe exposed US property in Q1: Marsh

In what is perhaps a reflection of an insurance and reinsurance marketplace with more catastrophe risk capital available, broker Marsh has for the first time in a while cited a slowing level of rate increases for catastrophe exposed commercial property accounts in the United States, with even some rate decreases reported.

us-property-insurance-challengesFor around five years now, there hasn’t been any real talk of catastrophe exposed property insurance rates in the US decreasing.

The seemingly inexorable rise in property insurance rates for both commercial and residential properties in regions of higher catastrophe risks, as well as those with tropical storm exposure on the coast, has been a feature of the market for some years now and while it does continue, there are signs of moderation, perhaps even stabilisation.

Marsh reports that, overall, it sees US commercial property insurance rates as still increasing, but stabilising, with an average rate increase of 8% in the first-quarter of 2024, down from an 11% average increase in the final quarter of 2023.

However, the commentary is perhaps the most positive, from a protection buyers point of view, in quite a long time.

“Many companies were able to secure additional limits in higher layers and improve coverage as competition increased and rate increases have leveled off,” Marsh explained.

With one driver being that, “Strong insurer financial results and additional reinsurance market supply led to increased insurer appetite.”

Importantly, the broker added that, “Companies with concentrations of assets in catastrophe (CAT) zones — such as the Gulf of Mexico, Atlantic coast, and California — that had experienced higher rate increases in recent years have begun to see lower increases or even decreases.”