FI-0118InsuranceMedium
Agentic Action ErrorPennsylvania AG settled with GEICO over AI underwriting tied to improper policy cancellations
Pennsylvania Attorney General Dave Sunday announced a settlement with GEICO on May 22, 2026, after an investigation found the insurer's AI tool for selecting new policyholders for underwriting review caused customer confusion and unfair policy cancellations. The AI selected a policyholder for review who submitted documents she believed were adequate, but GEICO failed to inform her the submission was insufficient and cancelled her policy without adequate notice, leaving her unknowingly driving uninsured. GEICO agreed to extend document submission deadlines, reduce verification requirements, and align with state AI guidance without admitting any violation of law.
- Confidence
- High (multi-source, primary)