What happened
After declining a $1,800 offer, the customer asked through the company’s online chat for the $3,000 maximum payout. The chatbot replied: “We will proceed with the payout option of $3,000.00 as per your request.”
He was told the payout had been initiated, but no money arrived. A representative then said the company had used an AI system for about a week that was “really confusing” and “miscommunicating to people.”
Utah Division of Consumer Protection director Katie Hass told KSL that “’The chatbot did it’ is not going to be an excuse when it comes to deceptive acts and practices in the State of Utah.”
What happened next
After KSL asked on the customer’s behalf, Choice Home Warranty said it would honor the chatbot’s offer, and he received his check. The company did not comment for the story.
What would have stopped it
- Let the chatbot quote a claim payout only from the claims system’s approved figure for that claim, never the plan maximum on request.
- Require an adjuster’s approval before the bot confirms a payout amount or says a payment has started.
- Record bot commitments on the claim so staff can honor or correct them quickly.
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Sources
This page summarizes the cited sources as of October 21, 2026. It adds no findings of our own about any person or company. See an error? Email contact@counterhold.com with the subject “Correction”. Corrections are noted on this page with their date. See our terms for how we handle correction and removal requests.
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