Must-Read Insurance Journal Highlights from the South Central Region in 2025
Lawsuits against major insurance carriers captured significant attention in Insurance Journal’s South Central region throughout 2025. Notably, Allstate and GEICO faced legal challenges in Texas this year, with allegations of improper practices surfacing against both companies.
In addition to these lawsuits, readers were particularly interested in new legislation impacting insurance regulations in Louisiana and Oklahoma. Another major topic of discussion was the severe rainstorms that struck Central Texas over the Fourth of July weekend.
Top 10 Insurance Journal South Central Stories of 2025
Texas Lawsuit Alleges Allstate Illegally Collects Driver Data
The most-read story of 2025 involved a Texas lawsuit against Allstate, alleging that the company illegally collects driver data through hidden software in mobile apps. This data is purportedly used to justify raising insurance rates for Texans. Texas Attorney General Ken Paxton stated that Allstate, along with its subsidiary Arity, has amassed trillions of miles of location data from over 45 million customers nationwide, creating the “world’s largest driving behavior database.” The lawsuit claims that Allstate uses this data for underwriting and sells it to third parties, including other insurance carriers. Allstate has maintained that it complies fully with state laws and regulations.
Driverless Trucking Firm Aurora Puts Human Back in Driver’s Seat
Another popular story highlighted Aurora, a driverless vehicle developer, which reversed its decision to operate fully autonomous trucks. Less than a month after launching commercial services, the company decided to place a human “observer” back in the driver’s seat at the request of PACCAR Inc., the truck manufacturer. In May, Aurora began commercial trucking services in Texas with two fully driverless vehicles, marking its first self-driving service on public roads. The company plans to expand operations to El Paso and Phoenix by the end of 2025.
Texas Man Sentenced to 13 Years in Prison for Multi-Million Dollar Fraud Scheme
A Texas man received a 13-year prison sentence in February for orchestrating a $5 million insurance fraud scheme. Jordan Ford, 32, was charged in June 2024 and pleaded guilty to conspiracy to commit wire fraud. Court documents revealed that Ford and his accomplices recruited insurance employees to extract personal information from legitimate claims. Using this stolen information, Ford impersonated clients to redirect payments to accounts controlled by him and his associates, ultimately misdirecting over $4.4 million from at least three insurance companies.
New Oklahoma Law Limits Post-Loss Assignment of Benefits on Property Damage
This year, Oklahoma lawmakers enacted a bill that restricts post-loss assignment of benefits for property damage under various insurance policies. House Bill 1084 prohibits the solicitation or acceptance of assignments related to property damage under auto, residential, or commercial policies, although it does not apply to liability coverage.
Louisiana Insurers Must Disclose Prior Policy Premiums Under Controversial New Law
A new law in Louisiana mandates that insurers disclose prior policy premiums when issuing renewal policies. This requirement aims to empower the insurance commissioner to address “excessive” rates. Under House Bill 148, the previous premium must be clearly displayed alongside the renewal premium, with compliance required by January 1, 2026.
Liberty Mutual Owes $4M Refund After Overcharging Louisiana Citizens Assessments
In March, Louisiana Insurance Commissioner Tim Temple announced that Liberty Mutual owes approximately $4 million to around 138,000 policyholders due to overcharging for the Louisiana Property Insurance Corporation Emergency Assessment over the past four years. Following a consumer complaint, it was revealed that Liberty Mutual had failed to update the assessment percentage since 2021. By April 1, the company adjusted the assessment charge to 0% for affected policyholders.
Louisiana Governor Vetoes Bill Limiting Bad Faith Lawsuits Against Insurers
In June, Louisiana Governor Jeff Landry vetoed a bill aimed at limiting bad faith lawsuits against insurers, a decision that drew criticism from the insurance industry. SB 111 sought to clarify when claimants could file bad faith lawsuits, proposing that such lawsuits be barred if insurers provided a good faith dispute regarding liability and medical causation.
Deadly Floods Reinforce Texas’ Challenge as Crisis Epicenter
The catastrophic floods in Central Texas during early July underscored the state’s ongoing struggle with extreme weather. The July 4-5 floods resulted in at least 137 fatalities and approximately $1.1 billion in damages. Texas has accounted for about one-third of all damages caused by extreme weather in the U.S. over the past decade, with 190 weather disasters costing $1 billion or more recorded from 1980 to 2024.
Texas Lawsuit Alleges GEICO Raises Premiums Despite Accident Forgiveness Promise
A class action lawsuit filed in February claims that GEICO violated its Accident Forgiveness program by raising premiums for a driver with a clean record after their first at-fault accident. The lawsuit alleges that GEICO increased the couple’s auto premium by 91% following a minor accident, despite their eligibility for the accident forgiveness benefit. The suit contends that GEICO breached the Texas Deceptive Trade Practices Act and the Texas Insurance Code.
Oklahoma Supreme Court: Insurer Must Provide Direct Renewal Notice to Named Insured
In a significant ruling, the Oklahoma Supreme Court determined that Western World, the insurer of the Relax Inn, must provide direct renewal notices to the named insured. After a fire destroyed the property, the owner discovered that the insurer had denied the claim due to a policy lapse. Although the insurer had sent a renewal offer to the agent, it was not communicated to the owner, leading the court to rule in favor of the property owner and affirm that coverage remained in effect until the fire.
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Lawsuits against major insurance carriers captured significant attention in Insurance Journal’s South Central region throughout 2025. Notably, Allstate and GEICO faced legal challenges in Texas this year, with allegations of improper practices surfacing against both companies.
In addition to these lawsuits, readers were particularly interested in new legislation impacting insurance regulations in Louisiana and Oklahoma. Another major topic of discussion was the severe rainstorms that struck Central Texas over the Fourth of July weekend.
Top 10 Insurance Journal South Central Stories of 2025
Texas Lawsuit Alleges Allstate Illegally Collects Driver Data
The most-read story of 2025 involved a Texas lawsuit against Allstate, alleging that the company illegally collects driver data through hidden software in mobile apps. This data is purportedly used to justify raising insurance rates for Texans. Texas Attorney General Ken Paxton stated that Allstate, along with its subsidiary Arity, has amassed trillions of miles of location data from over 45 million customers nationwide, creating the “world’s largest driving behavior database.” The lawsuit claims that Allstate uses this data for underwriting and sells it to third parties, including other insurance carriers. Allstate has maintained that it complies fully with state laws and regulations.
Driverless Trucking Firm Aurora Puts Human Back in Driver’s Seat
Another popular story highlighted Aurora, a driverless vehicle developer, which reversed its decision to operate fully autonomous trucks. Less than a month after launching commercial services, the company decided to place a human “observer” back in the driver’s seat at the request of PACCAR Inc., the truck manufacturer. In May, Aurora began commercial trucking services in Texas with two fully driverless vehicles, marking its first self-driving service on public roads. The company plans to expand operations to El Paso and Phoenix by the end of 2025.
Texas Man Sentenced to 13 Years in Prison for Multi-Million Dollar Fraud Scheme
A Texas man received a 13-year prison sentence in February for orchestrating a $5 million insurance fraud scheme. Jordan Ford, 32, was charged in June 2024 and pleaded guilty to conspiracy to commit wire fraud. Court documents revealed that Ford and his accomplices recruited insurance employees to extract personal information from legitimate claims. Using this stolen information, Ford impersonated clients to redirect payments to accounts controlled by him and his associates, ultimately misdirecting over $4.4 million from at least three insurance companies.
New Oklahoma Law Limits Post-Loss Assignment of Benefits on Property Damage
This year, Oklahoma lawmakers enacted a bill that restricts post-loss assignment of benefits for property damage under various insurance policies. House Bill 1084 prohibits the solicitation or acceptance of assignments related to property damage under auto, residential, or commercial policies, although it does not apply to liability coverage.
Louisiana Insurers Must Disclose Prior Policy Premiums Under Controversial New Law
A new law in Louisiana mandates that insurers disclose prior policy premiums when issuing renewal policies. This requirement aims to empower the insurance commissioner to address “excessive” rates. Under House Bill 148, the previous premium must be clearly displayed alongside the renewal premium, with compliance required by January 1, 2026.
Liberty Mutual Owes $4M Refund After Overcharging Louisiana Citizens Assessments
In March, Louisiana Insurance Commissioner Tim Temple announced that Liberty Mutual owes approximately $4 million to around 138,000 policyholders due to overcharging for the Louisiana Property Insurance Corporation Emergency Assessment over the past four years. Following a consumer complaint, it was revealed that Liberty Mutual had failed to update the assessment percentage since 2021. By April 1, the company adjusted the assessment charge to 0% for affected policyholders.
Louisiana Governor Vetoes Bill Limiting Bad Faith Lawsuits Against Insurers
In June, Louisiana Governor Jeff Landry vetoed a bill aimed at limiting bad faith lawsuits against insurers, a decision that drew criticism from the insurance industry. SB 111 sought to clarify when claimants could file bad faith lawsuits, proposing that such lawsuits be barred if insurers provided a good faith dispute regarding liability and medical causation.
Deadly Floods Reinforce Texas’ Challenge as Crisis Epicenter
The catastrophic floods in Central Texas during early July underscored the state’s ongoing struggle with extreme weather. The July 4-5 floods resulted in at least 137 fatalities and approximately $1.1 billion in damages. Texas has accounted for about one-third of all damages caused by extreme weather in the U.S. over the past decade, with 190 weather disasters costing $1 billion or more recorded from 1980 to 2024.
Texas Lawsuit Alleges GEICO Raises Premiums Despite Accident Forgiveness Promise
A class action lawsuit filed in February claims that GEICO violated its Accident Forgiveness program by raising premiums for a driver with a clean record after their first at-fault accident. The lawsuit alleges that GEICO increased the couple’s auto premium by 91% following a minor accident, despite their eligibility for the accident forgiveness benefit. The suit contends that GEICO breached the Texas Deceptive Trade Practices Act and the Texas Insurance Code.
Oklahoma Supreme Court: Insurer Must Provide Direct Renewal Notice to Named Insured
In a significant ruling, the Oklahoma Supreme Court determined that Western World, the insurer of the Relax Inn, must provide direct renewal notices to the named insured. After a fire destroyed the property, the owner discovered that the insurer had denied the claim due to a policy lapse. Although the insurer had sent a renewal offer to the agent, it was not communicated to the owner, leading the court to rule in favor of the property owner and affirm that coverage remained in effect until the fire.
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