US auto insurer GEICO has reportedly closed all 38 of its California agents’ offices and laid off hundreds of its employees.
A report by Insurance Business revealed that agents selling auto, home and other lines of insurance are affected.
GEICO continues to write business in the state however, which was confirmed by a spokesperson, it just means they are unable to write new policies.
“We are monitoring to make sure consumers are protected,” California Deputy Insurance Commissioner Michael Soller said in a statement shared with the publication the The Sacramento Bee.
Earlier this year, it was reported that GEICO was facing a potential $5.2m payout to a woman who claimed she contracted a sexually transmitted infection whilst having sex in the car of a man insured by the company. The claim prompted Tesla’s Elon Musk to call for legal action against law firms pursuing such “crazy” claims.
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