A lawsuit has been filed against Arag Insurance Company by lawyers claiming that the insurer has refused to pay them fully for their legal work on behalf of insured clients.
The plaintiffs accuse Arag Insurance of breach of contract, breach of implied covenant of good faith and fair dealing, common counts, concealment, intentional misrepresentation, false promise, equitable estoppel, violation of unfair business practices, and are seeking declaratory relief. They claim that Arag enticed them to represent insureds for thousands of hours with the promise of payment through a program developed by the company.
However, they allege that Arag has not adequately compensated them according to this agreement.
The plaintiffs are seeking damages of at least $75,000 from Arag for legal services provided to its insureds throughout California from January 2022 through October 2023.