The valuation report used to calculate the actual cash value of total-loss vehicles is prepared by third-party Mitchell International Inc., which includes the application of a “projected sold adjustment,” or PSA, to account for consumer purchasing behavior and determine the value of comparable vehicles.
U.S. District Judge Sara L. Ellis ruled that the policyholders sufficiently alleged a deceptive conduct claim under the ICFA, regarding allegations that Progressive failed to disclose material facts about the application of the PSA. The judge also held that the policyholders have not asserted a claim for unfair conduct under the ICFA, with the possible exception of their allegation that Progressive violated Illinois law. However, the judge dismissed the claim without prejudice, finding that the policyholders failed to adequately plead that Progressive’s actions violated the state’s total-loss regulation.
The policyholders are also permitted to pursue their bad faith claim in addition to their claim for breach of contract, which sufficiently alleged that the insurers breached the policy provision requiring them to pay the limit of liability, the judge said.
