Proposed Class Suit Against GEICO Revived by Appeals Court

GEICO Indemnity Co. must again face a proposed class action alleging it failed to advance pay medical bills, after the Ninth Circuit said federal courts might not have jurisdiction.

Brandon Moe was rear-ended by a GEICO-insured driver, and a dispute arose first over whether GEICO was obligated to pay his medical bills in advance under Montana law. Moe sued in state court because when GEICO did pay, it allegedly excluded roughly $855 in collection fees and interest incurred while GEICO disputed the original bill.

GEICO removed the suit to federal court under the Class Action Fairness Act, alleging the claims ...