Farmers Fire Insurance Exchange Class Action Settlement

If Fire Insurance Exchange, which markets policies under the Farmers service mark, applied depreciation when calculating a payment made to you on a property loss insurance claim, you may be entitled to benefits from a class action settlement.

The Fire Insurance Exchange class action lawsuit challenges the method that Fire Insurance Exchange uses to determine the actual cash value of lost or damaged property. According to the class action lawsuit, Fire Insurance Exchange was required to take depreciation on lost or damaged property based only on the physical condition of the property before it was lost or damaged, and that instead Fire Insurance Exchange took excess depreciation under depreciation schedules based on the age of the lost or damaged property.

The class action lawsuit also alleges that Fire Insurance Exchange improperly applied depreciation to certain structural items that the plaintiffs contend are exempt from depreciation altogether.

Fire Insurance Exchange denies all allegations of wrongdoing but agreed to settle the class action lawsuit to avoid the cost and risk of trial.

If you wish to exclude yourself from or object to the Fire Insurance Exchange settlement, you must do so no later than Nov. 24, 2015.

UPDATE: Final Approval of this settlement was granted on Feb. 23, 2016.

Who’s Eligible

You are a Class Member of the Fire Insurance Exchange settlement if:

• You are or were insured on a Fire Insurance Exchange policy;
• You suffered a loss of or damage to contents and/or structure that was covered under a policy;
• You submitted an insurance claim to Fire Insurance Exchange for the loss or damage;
• You received one actual cash value property loss payment on the insurance claim on or after May 6, 2010, and Fire Insurance Exchange applied depreciation in determining the actual cash value of the lost or damaged property in connection with that insurance claim;
• Your insurance claim had all “Claims Units” closed as of March 31, 2015; and
• Your insurance claim includes at least one “Eligible Claims Unit.”

Under the terms of the class action settlement, “Claims Unit” means either contents or structure claims unit as reflected in Fire Insurance Exchange’s claims file for an insurance claim.

“Eligible Claims Unit” means any Claims Unit except and excluding: (a) a Claims Unit for which payments made by Fire Insurance Exchange were equal to or exceeded all applicable limits or sub-limits in the applicable policy; (b) a Claims Unit with no “Net Outstanding Depreciation,” (c) a structure Claims Unit with a total loss paid on a fair market value basis; or (d) a contents Claims Unit in which an insured making an Insurance Claim submitted information on the MyPropertyLoss.com Website, on or after Nov. 1, 2012, about lost or damaged contents items.

“Net Outstanding Depreciation” means the amount of total replacement cost estimated by Fire Insurance Exchange minus the total of (a) applied deductible, (b) paid actual cash value and (c) paid recoverable depreciation.

Potential Award

Varies. Class Members who file valid and timely Claim Forms will be eligible to receive 12.5 percent of the Net Outstanding Depreciation on their insurance claim.

Proof of Purchase

N/A

Claim Form

CLICK HERE TO FILE A CLAIM (PDF) »

Claim Form Deadline

2/12/2016

Case Name

Alexander v. Fire Insurance Exchange, Case No. BC460992, in the Superior Court of the State of California for the County of Los Angeles

Final Hearing

1/13/2016

Settlement Website

www.AlexanderSettlement.com

Claims Administrator

FIRE Settlement Claims
P.O. Box 2280
Faribault, MN 55021-2415
1-866-686-9802

Class Counsel

Michael von Loewenfeldt
KERR & WAGSTAFFE LLP

Defense Counsel

HINSHAW & CULBERTSON LLP