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Texas AG sues Allstate, Arity for alleged unlawful data collection

January 14, 2025
Texas Attorney General Ken Paxton is suing Allstate and its subsidiary, Arity, for allegedly unlawfully collecting the data of more than 45 million Americans and using it to raise insurance rates. Paxton claims Allstate and Arity “would pay app developers to incorporate its software to track consumers’ driving data,” according to a press release.

The lawsuit states that Allstate embedded software in third-party apps, causing consumers to download it unknowingly. Once installed, the software allowed Allstate to track consumers’ location and movements in real-time, creating what is described as the “world’s largest driving behavior database.”

The lawsuit further alleges that Allstate and other insurers used the consumer data collected through these third-party apps to increase premiums when quotes were requested or coverage was renewed.

In a statement, Paxton said: “The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better, and we will hold all these companies accountable.”

Paxton alleges that Allstate’s actions violated the Texas Data Privacy and Security Act (TDPSA). The law requires clear notice and informed consent regarding the use of Texans’ sensitive data.

However, a representative for Allstate Corporation told Fox News that its data collection system “fully complies with all laws and regulations.”

Paxton is seeking thousands of dollars in civil penalties per violation and “full restitution or restoration to all the consumers who suffered a loss.”
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AAA backs off offering home, car insurance to Florida residents

July 17, 2023
AAA has become the fourth insurer to pull back from offering insurance to residents of Florida in the past year. The company said it will not renew the auto and home insurance policies for some customers in Florida.

“Unfortunately, Florida’s insurance market has become challenging in recent years,” the company said in a statement emailed to CBS MoneyWatch. “Last year’s catastrophic hurricane season contributed to an unprecedented rise in reinsurance rates, making it more costly for insurance companies to operate.”

AAA’s announcement came just days after Farmers Insurance announced it will no longer offer coverage in Florida. While the AAA change is only expected to affect “a small percentage” of policy holders, the Farmers decision will affect roughly 100,000 customers.

“We have advised the Florida Office of Insurance Regulation of our decision to discontinue offering Farmers-branded auto, home and umbrella policies in the state,” Farmers spokesman Trevor Chapman said in a statement to CBS Miami. “This business decision was necessary to effectively manage risk exposure.”

Earlier in July 2023, Farmers announced it would limit its home insurance policies in California. State Farm and Allstate have taken similar steps in The Golden State.

“With record-breaking inflation, severe weather events, and reconstruction costs continuing to climb, we are focused on serving our customers while effectively managing our business,” a spokesperson for Farmers told ABC10. “Effective July 3, Farmers will limit new homeowners insurance policies in California to a level consistent with the volume we projected to write each month before recent market changes.”

Between California’s wildfires and Florida’s hurricanes, natural disasters have proven to make insuring residents too expensive for insurance companies like AAA.

Hurricanes Ian and Nicole devastated Florida in 2022, causing billions of dollars in damage.

Home insurances is not cheap for residents either. Homeowners in Florida pay about three times as much for insurance coverage as the national average. Rates are expected to soar about 40% in 2023.
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Russia halts grain flow, deadly storms pummel Northeast: July 17 rundown

July 17, 2023
Russia announced it is pulling out of the Ukrainian grain agreement, and severe storms pummeled the Northeast. These stories and more highlight the rundown for Monday, July 17, 2023.

Russia pulls out of Ukrainian grain deal

Russia has announced it has halted its deal to allow grain to flow from Ukraine to countries in Africa, the Middle East and Asia. The deal was struck in 2022, after Russia had begun its invasion of Ukraine, in order to avoid a global food crisis.

The announcement came just hours after a section of the key bridge connecting Crimea to Russia’s mainland exploded. Russia blamed the explosion on Ukraine, calling it a terrorist act.

Two people were killed and another was injured. While the Ukrainian military suggested the attack could’ve been Russian provocation, Ukrainian media said Ukraine’s security service used sea drones to blow up the portion of the bridge.

This is the second time the bridge has been targeted in recent months. Ukraine was behind another bombing last October.

Crimea serves as a major hub for Russia’s war in Ukraine. Access to the bridge is vital for Russian supplies.

More than 10,000 flights disrupted by severe storms

More than 10,000 flights were disrupted by severe weather across the northeastern United States. More than 2,500 flights have been canceled and nearly 8,000 more delayed, according to flight tracking data.

Jetblue has been significantly impacted, with 27% of its flights canceled and 43% delayed. The Federal Aviation Administration released a statement that said slow-moving thunderstorms were to blame.

5 dead, 2 missing in Pennsylvania flash flooding

Severe storms also created deadly flood waters in Pennsylvania over the weekend. In Bucks County, just outside Philadelphia, eleven cars were surrounded by fast-moving water that was five-feet deep.

Five people died after getting caught in flash flooding. One of the people who died was a mother. Her baby and toddler are still missing.

Over the last month, some parts of the Northeast have seen triple their average rainfall.

“This is possibly our new normal,” Gov. Kathy Hochul (D-NY) said Sunday, July 16. “This is the kind of weather that even what should normally be a beautiful beach going Sunday in July can turn into a devastating catastrophe because of mother nature.”

Suspect in Georgia mass shooting killed

A mass shooting in Georgia ended with four people killed and the suspected gunman dead following a shootout with police. Authorities say officers were able to track down 40-year-old Andre L. Longmore Sunday, one day after the deadly rampage.

Three officers were wounded during the exchange of gunfire. The injured officers are expected to recover.

The mass shooting took place in the community of Hampton, about 40 miles south of Atlanta. The names of the victims have not been released. A motive for the shooting remains under investigation.

AAA pulls back Florida coverage amid hurricane season

Right in the midst of hurricane season, some Florida residents have been dropped from their insurance companies. Big-name insurance companies like AIG, All State and State Farm have stopped taking on new customers in certain high-risk states like Florida and California.

Last week, Farmers Insurance announced it was pulling out of the Sunshine State. Days later, AAA said they were following suit by not renewing home or auto insurance policies for some of its Florida residents.

More trouble at Twitter

In a reply responding to business advice, Twitter owner Elon Musk revealed that the social media company is losing cash because of a 50% drop in advertising, as well as a heavy debt load. Musk added that Twitter needs to reach a positive cash flow before the company has “the luxury of anything else.”

Musk, who acquired Twitter last fall in a $44 billion deal, stepped down as the company’s CEO in May. Earlier in July, Twitter got some new competition in the form of Meta’s platform called Threads.

In its first week, Threads reached 100 million downloads. Twitter responded by threatening legal action against Meta.
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Farmers Insurance limits home insurance policies in California

July 10, 2023

Farmers Insurance announced it would be the latest insurance company to limit its home insurance policies in California. The company is now limited to 7,000 new homeowners insurance policies per month for the entire state.

The announcement comes amid rising home insurance costs, an uncertain regulatory environment and a volatile natural environment. Farmers joins State Farm and Allstate as companies looking to limit their risk exposure.

“With record-breaking inflation, severe weather events, and reconstruction costs continuing to climb, we are focused on serving our customers while effectively managing our business,” a spokesperson for Farmers told ABC10 last week. “Effective July 3, Farmers will limit new homeowners insurance policies in California to a level consistent with the volume we projected to write each month before recent market changes.”

In May, State Farm announced it would no longer offer new homeowners insurance policies. Allstate stopped offering new home insurance in November 2022.

“While both State Farm and Allstate made a business decision to put a temporary pause on new homeowners policies in our state, current customers will not lose their insurance, and both State Farm and Allstate continue to write auto insurance,” California Deputy Insurance Commissioner Michael Soller told ABC10. “While the Department of Insurance cannot do anything about rising costs of repairs, materials, and rebuilding, we are not powerless.”

The decisions from State Farm and Allstate sent many people looking for new homeowners insurance policies flocking to Farmers. The decision from Farmers to cap the number of home insurance policies in California is expected to further raise the price.

“About two years ago, (my premium) doubled. I think it went from about three to six,” Oakland Hill homeowner Suki Dennis said, adding that she now pays close to $7,000 a year. “It’s a lot of money for somebody that’s never had a claim on anything.”
Ukraine NATO membership on agenda at summit: July 10 rundown

July 10, 2023
President Joe Biden is set to discuss Ukraine’s potential NATO membership with world leaders at the annual NATO summit this week, and the FDA may take a second-look at a popular energy drink on the market. These stories and more highlight the rundown for Monday, July 10, 2023.

Biden to meet with King Charles ahead of NATO summit

President Biden arrived in Europe for a series of meetings this week, including the annual NATO summit in Lithuania. Ukraine has been heavily lobbying to gain membership into NATO, but ahead of the summit, Biden said it would be premature to allow Ukraine to join.

Biden’s first stop in Europe is England, where he will meet with King Charles III for the first time since his coronation. They are expected to discuss the war in Ukraine.

Biden’s final stop will be in Finland, which joined NATO earlier this year. In addition to Ukraine’s NATO membership, Biden will also be in discussions regarding Sweden joining the alliance at the summit.

Also on the table, Biden’s decision to send cluster munitions to Ukraine. It’s a move that has been scrutinized because of the threat to civilians. The weapon has been banned by more than 100 countries.

For more on why this weapon is so controversial, read our in-depth report here.

U.S. drones used to kill ISIS leader

The three U.S. drones Russia was accused of harassing over Syria last week were the same drones the U.S. used to carry out an airstrike that killed a top Islamic-State group-leader on Friday, June 7. Usamah al-Muhajir was killed while he was riding a motorcycle in northwestern Syria in an area where the U.S. has carried out other strikes against terrorist leaders.

Appeals court overturns hold on TN gender-affirming care ban

A Tennessee law that bans doctors from providing puberty-blockers or other gender-affirming care for minors can now go into effect immediately. A U.S. appeals court voted 2 to 1 to reverse a lower court’s decision that had blocked the law from going into place while it was being challenged.

The law is part of a wider effort by Republican states looking to ban medical procedures that alter a child’s gender assigned at birth. Federal judges have blocked five laws similar to Tennessee’s from taking effect. Those judges found the laws violated the constitution’s guarantee of equal protection.

Intense flooding disrupts the South, Northeast

Intense storms swept across the U.S. over the weekend. Flash flooding and life-saving water rescues were reported in Oklahoma after heavy rains poured down.

In Orange County, New York, rushing flood waters turned roadways into rushing rapids, and a woman was killed after being swept away. Nearly a foot of rain fell, prompting a state of emergency.

In Norfolk, Connecticut, the rain washed away portions of a bridge. And in Reading, Pennsylvania, drivers on a major highway were left stranded in flood waters as an underpass became impassable.

Farmers Insurance limits home policies in California

Farmers Insurance has announced it will limit new home insurance policies in the state of California. The announcement makes Farmers the latest insurance company to do so due to the high likelihood of wildfires and severe weather events in the state.

State Farm announced last month it would stop writing new policies in California and Allstate made the same decision in late 2022. For many Californians, their home insurance policies have skyrocketed in price within the past few years, or they’re being dropped by their insurance companies completely.

Schumer calls on FDA to look into Prime Energy

Senate Majority Leader Chuck Schumer (D-NY) has called on the FDA to look into PRIME, an energy drink brand founded by famous influencers Logan Paul and KSI. PRIME’s launch in 2022 was an immediate success among the duo’s millions of predominantly younger followers.

What Sen. Schumer is trying to bring attention to is what’s in the drinks, specifically caffeine. While advertising itself as sugar-free and vegan, PRIME energy drinks contain 200 milligrams of caffeine per 12 ounces. That’s equal to six cans of Coke or nearly two Red Bulls.

The high caffeine content has led to bans from some schools in the United Kingdom and Australia. Pediatricians have warned of an increased risk of heart problems, anxiety and digestive issues in kids.

Representatives for PRIME have defended the drink, saying it’s clearly labeled as not recommended for children under 18. They added that PRIME also sells a sports drink, PRIME Hydration, that has no caffeine at all.
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