Progressive 2012 Annual Report Download - page 36

The following is a discussion of potentially significant pending cases at December 31, 2012, and certain cases resolved
during the three-year period then ended.
As to the pending cases, although their outcomes are uncertain, in each case we do not believe that the outcome will have
a material impact on our consolidated financial condition, cash flows, or results of operations. In addition, we do not
consider the losses from the pending cases to be both probable and estimable, and we are unable to estimate a range of
loss, if any, at this time, due to the factors discussed above. In the event that any one or more of these cases results in a
substantial judgment against, or settlement by, Progressive, the resulting liability could have a material effect on our
consolidated financial condition, cash flows, and/or results of operations.
Pending cases at December 31, 2012, include:
• One certified class action lawsuit seeking interest on personal injury protection (PIP) payments that allegedly were
late.
• One putative class action lawsuit alleging Progressive did not reimburse any of its insureds who incurred legal fees
to recover money from another Progressive insured. We determined that it is probable that a loss has been
incurred on this lawsuit; however, due to its complexity, we were unable to estimate a range of loss.
• One putative class action alleging that Progressive’s denial of claims under collision coverage is improper by its
interpretation of the duplicate recovery provision when the insured has not recovered all losses from another
insurer, such as attorney fees.
• One putative class action alleging that Progressive’s website did not adequately disclose sufficient information
concerning the PIP deductibles when customers indicated they are covered by private health insurance.
• Two putative class action lawsuits challenging the labor rates our insurance subsidiaries pay to auto body repair
shops.
• One patent matter alleging Progressive infringes on patented marketing technology.
• One putative class action alleging Progressive steers customers to service centers and network shops to have
their vehicle repair.
• Five putative class action lawsuits challenging Progressive’s insurance subsidiaries’ practice in Florida of adjusting
PIP and first-party medical payments.
• One putative class action alleging Progressive tethers customers to their policies by enforcing a minimum term and
charging a purportedly undisclosed but apparently fixed cancellation fee and “other” fees if policies are terminated
prior to the expiration of the contract period.
• One putative class action lawsuit that challenges our insurance subsidiaries’ adjustment of bodily injury claims
where the plaintiff alleges Progressive undervalued submitted medical bills.
• One putative class action lawsuit challenging our policy form with regard to rejecting uninsured motorist coverage.
We determined that it is probable that a loss has been incurred on this lawsuit; however, due to its complexity, we
were unable to estimate a range of loss.
• One putative class action lawsuit challenging our insureds’ rejection of medpay coverage.
• One putative class action lawsuit challenging the manner in which Progressive grants a discount for anti-theft
devices.
• Two putative class action lawsuits alleging that Progressive charged insureds for illusory uninsured motorist/
underinsured motorist coverage.
• One putative class action lawsuit alleging that Progressive failed to have insureds reject, in writing, uninsured
motorist coverage with limits equal to the limits of liability coverage.
• One putative class action lawsuit alleging that Progressive improperly applies a preferred provider discount to
medical payment claims.
• One putative class action lawsuit alleging that Progressive undervalues total loss claims through the use of certain
valuation tools.
• One putative class action lawsuit challenging the manner in which Progressive charges premium and assesses
total loss claims for commercial vehicle stated amount policies.
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