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Insurance company to pay out $1.5 million in denied claims due to mental health discrimination

An investigation from the Washington Attorney General's office found an insurance company discriminated against people with disabilities after denying their claims.
Credit: AP
FILE - In this Feb. 25, 2019 file photo, Washington state Attorney General Bob Ferguson speaks at a news conference announcing a lawsuit challenging the Trump administration's Title X "gag rule" in Seattle. A federal judge in Washington state on Thursday, April 25, 2019, will hear arguments in two cases against new Trump administration rules that could cut off federal funding for health care providers who refer patients for an abortion. (AP Photo/Elaine Thompson, File)

OLYMPIA, Wash. — The Washington Attorney General claimed a travel insurance company owes $1.5 million to customers who were denied travel insurance because of their mental health.

Attorney General Bob Ferguson claimed insurance company Allianz discriminated against 560 Washingtonians with mental or nervous health disorders. According to Ferguson, Allianz approved claims for physical health conditions but denied claims for mental health.

According to Ferguson's civil rights lawsuit, the investigation covered claim denials from Allianz customers starting from January 2014 to January 2023. The office began its investigation in 2019. The lawsuit said Allianz's policy of denying travel loss coverage because of mental health unfairly discriminated against people with disabilities. People with disabilities are a protected class under the Washington Law Against Discrimination. 

“Allianz would accept a claim over a broken foot, but not a life-altering mental health diagnosis — that’s not fair, and it’s not lawful,” Ferguson said. “Mental health conditions are just as real and serious as physical conditions — and both have protection under the law.”

Ferguson said Allianz will fully reimburse Washington customers for travel losses and premiums with interest. The whole payout will cost Allianz $800,000. Allianz also has to pay $700,000 to cover legal fees.

If you believe Allianz denied a claim from you because of mental health, contact the Wing Luke Civil Rights Division by emailing travelinsurance@atg.wa.gov.

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