Fred Loya Auto Insurance Class Action Settlement

Loya Insurance Company and Fred Loya Insurance Agency Inc. have agreed to settle a class action lawsuit related to uninsured and/or underinsured motorist coverage for some of its policyholders. If you had an automobile accident while you were insured under a Fred Loya auto insurance policy, you may be eligible for benefits from the class action settlement.

The Loya insurance class action lawsuit alleges that Fred Loya’s uninsured/underinsured motorist coverage (UM/UIM) rejection forms did not adequately explain a policyholder’s options before selling them their policies. The plaintiffs allege these rejection forms did not meet the requirements under New Mexico case law and that the affected policyholders should have their policies reformed to include UM/UIM coverage equal to liability limits.

According to the class action settlement documents, the legal claims stem from a New Mexico Supreme Court decision (Jordan v. Allstate Ins. Co.), which held that “[i]f an insurer does not (1) offer the insured UM/UIM coverage equal to his or her liability limits, (2) inform the insured about premium costs corresponding to the available levels of coverage, (3) obtain a written rejection of UM/UIM coverage equal to the liability limits, and (4) incorporate that rejection into the policy in a way that affords the insured a fair opportunity to reconsider the decision to reject, the policy will be reformed to provide UM/UIM coverage equal to the liability limits.”

The Loya defendants deny any wrongdoing but agreed to settle the insurance coverage class action lawsuit to avoid the cost and risk of trial. The Fred Loya settlement was preliminarily approved on Dec. 29, 2014.

Who’s Eligible

Class Members include anyone who was covered by an insurance policy issued by Fred Loya in New Mexico after Feb. 2, 2006 and signed a UM/UIM rejection form before Jan. 31, 2011. This means that passengers who were in the car at the time of the accident may also be eligible to make a claim.

NOTE: Policyholders who settled a UM/UIM claim and signed a final release are not included in the Loya Insurance class action settlement.

Potential Award

Varies. The Loya Insurance class action settlement will pay eligible Class Members the UM/UIM benefits due to them for medical expenses, lost wages, and/or property damage resulting from that accident, up to the insurance policy limits, multiplied by 150 percent. For example, if you would have received $5,000 for medical expenses, lost wages and/or property damage covered by UM/UIM insurance through a Fred Loya insurance policy, your payment from the class action settlement would be $7,500.

NOTE: If any other entity (such as Medicare, Medicaid, a hospital, a health insurance company or another auto insurance company) paid any of your medical expenses resulting from the auto accident, they may have a claim against you. In this situation, your class action settlement payment may be delayed, reduced or paid to the other entity.

Proof of Purchase

N/A. Class Members may be asked to provide medical or employment information in order to be eligible for payment from the Fred Loya Insurance class action settlement.

Claim Form

Claim Form Deadline

6/20/2015

Case Name

Warlock v. Loya Insurance Company, Case No. D-202-CV-2012-01260, in the Second Judicial District Court of New Mexico

Final Hearing

5/18/2015

Settlement Website

www.WarlockInsuranceSettlement.com

Claims Administrator

Fred Loya Settlement Administrator
P.O. Box 10117
Dublin, OH 43017-3117
1-855-382-6398
info@WarlockInsuranceSettlement.com

Class Counsel

Keith Scranton
FRANKLIN D. AZAR & ASSOCIATES PC

Defense Counsel

Casie Collingnon
BAKER & HOSTETLER LLP