Pennsylvania Attorney General Dave Sunday has announced an agreement with GEICO after an investigation into a policyholder complaint. The case involved a Philadelphia County woman who allegedly lost auto insurance after a review that included AI features.
Sunday said consumers deserve transparency and fairness in the insurance process. He said losing coverage can leave a driver unknowingly uninsured and exposed to penalties and financial risk.
The complaint centered on a woman from West Philadelphia. She lost coverage during GEICO’s standard 60-day policy review for new customers.
According to Sunday, GEICO used a tool with AI features to select the policyholder for further review. The company then required her to submit additional documentation under threat of cancellation.
The woman believed she had submitted the required documents. The Attorney General’s office said she had not, and GEICO did not make that clear in its final communication before cancellation.
Her policy was canceled without adequate notice, according to the state. She later drove without knowing she was uninsured.
Under the agreement, GEICO will follow Pennsylvania Insurance Department guidance on AI systems. The company also agreed to extend the documentation period for new policyholders by one week.
GEICO will allow customers to provide one form of residency verification rather than two. It will also allow a current driver’s license to serve as residency verification.
Sunday said the agreement secures improvements for policyholders. He said it also ensures GEICO’s use of new technology stays within insurance industry standards.
