IMPORTANT UPDATE: On October 6, 2022, the Court granted final approval of the Settlement. It was not required for Class Members to attend the Fairness Hearing. For more information, please review the Order and Final Judgment.
What is this lawsuit about?
A settlement has been reached in a class action with Pekin Insurance Company and The Farmers Automobile Insurance Association (the "Insurance Companies"). The lawsuit claims that the Insurance Companies improperly deducted depreciation attributable to the costs of labor when adjusting some insurance claims in Illinois. The Insurance Companies have maintained that they paid claims reasonably and appropriately and denied all allegations that they acted wrongfully or unlawfully.
The Court did not decide in favor of the Plaintiff or the Insurance Companies and has not found that the Insurance Companies did anything wrong. Instead, both sides agreed to settle. That way, the parties avoid the cost of litigation, a trial and, potentially, an appeal, and the people and organizations who qualify will get compensation.
Who is included?
The Class includes:
All policyholders under any Commercial or Personal Lines property insurance policy issued by the Insurance Companies, who made a Structural Loss claim for property located in the State of Illinois during the applicable Class Periods, that resulted in an ACV ("actual cash value") Payment from which Nonmaterial Depreciation was withheld, or that would have resulted in an ACV Payment but for the withholding of Nonmaterial Depreciation causing the loss to drop below the applicable deductible.
The Class Period means the following time-period: For Illinois policyholders of Pekin Insurance Company or The Farmers Automobile Insurance Association, with Structural Loss claims with dates of loss occurred on or after September 10, 2018, and who provided notice of loss to Pekin on or before July 30, 2020. To learn more about who is excluded from the Class, please see FAQ 7 for more information.
What does the Settlement provide to Class Members?
Class Members, who complete and sign a claim form and timely mail it to the proper address, or submit the claim form by uploading it on this website, may be eligible for a payment. The deadline to submit a claim is November 22, 2022. Under the settlement, the Insurance Companies have agreed to pay Class Members, who timely submit valid claims, determined as follows:
(a) for Class Members to whom all Nonmaterial Depreciation has not been paid (which is a majority of Class Members), 115% of the net estimated Nonmaterial Depreciation that was withheld from the ACV Payments and not subsequently paid with the "net estimated Nonmaterial Depreciation." This is calculated by determining the total depreciation (material and non-material depreciation) attendant to a claim and multiplying that figure by 0.63. The average claim payment for these Class Members is estimated to be $2,728.00. If you fall in this group, your claim will most likely be different than this amount and dependent on your claim;
(b) for Class Members who recovered all outstanding Depreciation through the claim process, a one-time payment ranging from $34.22 to $130.74, depending on the type of your property insurance policy. The average claim for these "interest only" Class Members is approximately $43.39, but your payment will be dependent upon the type of insurance policy you purchased.
You must submit a claim form in order to determine whether you are eligible for and the amount of your settlement payment. If you do not, you will not receive a settlement payment. For additional details on the payment terms, please see the Settlement Agreement or call toll free 1-855-579-1267.