You really cannot make this stuff up. Progressive Insurance Company, one of America’s largest auto insurers, is alleged to have created a scheme that would make ambulance chasers blush – directly feeding accident victim information to a law firm for solicitation.
The Bizarre Facts
Picture this: You get into a minor fender bender, dutifully report it to Progressive, and two days later receive an unsolicited call promising you $10,000 if you sign up with a law firm you’ve never heard of. That’s exactly what allegedly happened to Kelly Cook and his wife, Dr. Esther Kelley-Cook after their parents had a minor accident in their car.
The law firm, Kanner & Pintaluga (K&P), apparently wasn’t shy about revealing the source of their lead, telling Dr. Kelley-Cook directly that Progressive gave them the contact information under an agreement between the companies.
The Serious Implications
While the facts read like a rejected legal comedy script, the consequences are no laughing matter. The alleged scheme potentially violates:
- Federal racketeering laws (RICO)
- The Driver’s Privacy Protection Act
- Texas barratry laws
- Multiple ethical rules governing attorney conduct
The criminal implications are severe. As I’ve previously written in Public Adjusters and Those Directly Soliciting Insurance Claims on Behalf of Attorneys Are Committing a Crime and Can Go to Jail Along with the Attorneys, attorneys and those who engage in direct solicitation of claims for attorneys can face loss of their licenses and jail time depending upon the state where these actions happen.
Why This Matters
This case highlights a growing problem in the legal policyholder side of the insurance claims industry – the increasingly aggressive tactics used to acquire clients through potentially illegal means. It undermines the public trust of those who know better but are acting out of greed rather than service first.
For policyholders, this serves as a reminder to be wary of unsolicited contact after an accident or a loss. For insurance professionals and attorneys, it reinforces that no business advantage is worth risking your license or freedom.
The proposed class action 1 seeks statutory damages of $10,000 per violation, among other remedies. But beyond the monetary penalties, this case may finally shed light on practices that have long operated in the dark.
The old saying goes that truth is stranger than fiction. In this case, the truth about how some insurance companies and law firms allegedly operate may indeed be stranger – and more troubling – than any fiction writer could imagine. Do I think Progressive executives have approved a scheme that provides private information to plaintiff attorneys to make these types of solicitations? No. But somehow, the law firm or those the law firm has engaged to market for it has that private information.
Remember, if you receive unsolicited contact after an accident or loss, document everything. And if you’re an insurance professional or attorney, stay far away from any schemes involving the direct solicitation of clients. The MMA fiasco can show what can happen. The consequences are simply not worth it.
Thought For The Day
The law is the floor, not the ceiling, of ethics
—Thurgood Marshall
1 Cook v. Progressive Cas. Ins. Co., No.4:24-cv-4423 (S.D. Tex. [Complaint filed Nov. 11, 2024]).
