Alliance United Insurance Renewal Billing Fees Class Action Settlement

A class action settlement has been reached between Alliance United Insurance and a group of policyholders who allege they paid in full for their insurance policy but were charged renewal billing fees.

In June 2015, plaintiffs Michael and Loralee Thoren sued Alliance United Insurance in California Superior Court claiming the $15 “renewal billing fee” charged by the company constitute “premium” under California Insurance Code and was allegedly not disclosed in their policy – a violation of several state consumer protection laws.

According to the lawsuit, renewal billing fees are those paid at the beginning of a new policy term by policyholders who renewed their insurance policy, and who paid their premium in full.

This additional premium was reportedly not disclosed in the policy but instead appeared in a billing statement under the title “Billing Fee.” Therefore, in order to pay for the insurance policy in full and secure the insurance coverage, the plaintiffs were required to pay Alliance not only the $47.27 premium stated in their auto insurance policy but an additional premium of $15.

Under the terms of the settlement, Alliance will pay policyholders 85 percent of the first renewal billing fee they paid, 40 percent of the second renewal billing fee they paid (if applicable), and 23 percent of any subsequent renewal billing fees they paid (if applicable) during the period of June 16, 2011 and Dec. 27, 2015.

The Thorens, in addition to their settlement recovery, will receive $5,000 total in a service recognition award for the time they spent on this case. The settlement also covers all attorneys’ fees, court costs, and claims administration costs.

Alliance states that effective Dec. 27, 2015, it changed its business practices so that any policies it issued state the amount of any renewal billing fees on the declaration page of the policy itself.

The company denies any liability, wrongdoing, and damages in this case but has agreed to settle in order to avoid further litigation costs.

Class Members who wish to be excluded from or object to the settlement agreement must do so by Feb. 2, 2017.

Who’s Eligible

The settlement Class includes “all policyholders of Alliance United Insurance Company who paid their premium in full when renewing their Policy, and who paid one or more Renewal Billing Fees” during the period of June 16, 2011 and Dec. 27, 2015.

Excluded from the Class are any present or former officers and/or directors of Alliance and any person who opts to be excluded from the Class.  Additionally, if any holder of a jointly-held policy elects to be excluded from the Class, then all joint policyholders on that policy will be excluded.

Potential Award

Varies.

Class Members who submit a valid and timely claim may receive for each policy held during the Class Period:

• 85% of the first Renewal Billing Fee they paid
• 40% of the second Renewal Billing Fee they paid (if applicable)
• 23% of any subsequent Renewal Billing Fees they paid (if applicable)

During the Class Period, Renewal Billing Fees ranged from $8 to $15. The Claim Form you received with the Class Notice, tells you how much you paid in Renewal Billing Fees, so you can see how much you may receive under the settlement.

Proof of Purchase

N/A

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

3/20/2017

Case Name

Michael Thoren, et al. v. Alliance United Insurance Company, et al., Case No. 37-2015-00020223-CU-BT-CTL, in the Superior Court of the State of California, County of San Diego

Final Hearing

2/17/2017

UPDATE: On February 17, 2017, the court granted the Alliance United Insurance billing fees settlement final approval.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.ThorenSettlement.com

Claims Administrator

Thoren Settlement
c/o Epiq Systems Inc.
P.O. Box 4153
Portland, OR 97208-4153
844-565-4388

Email: info@ThorenSettlement.com

Class Counsel

Vincent J. Bartolotta Jr.
Jarrett S. Charo
Benjamin I. Siminou
THORSNES BARTOLOTTA MCGUIRE LLP

Defense Counsel

Mark L. Hanover
Jaikaran Singh
DENTONS US LLP