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This settlement is closed!
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Farmers Insurance has agree to settle a class action lawsuit alleging it improperly calculated labor costs on commercial insurance claims in the state of Arizona.
Class Members include those who submitted a claim using their Arizona commercial insurance policy issued by Mid-Century Insurance Company, Farmers Insurance Exchange or Truck Insurance Exchange.
The claim must have been for a loss that occurred on or after Aug. 18, 2015 and was closed by Farmers on or before Feb. 5, 2019 and included payments for any physical loss or damage.
The Farmers commercial loss class action lawsuit alleged the insurer miscalculated estimated amounts of labor depreciation when making actual cash value payments for insurance claims for physical losses.
According to the complaint, Farmers applied depreciation tables to the costs of labor on claims made by its commercial insurance policyholders.
Under Arizona law, alleged the Farmers commercial loss class action lawsuit, the insurance company began applying depreciation to labor costs in an illogical manner, devaluing claims made by Arizona residents.
Materials, such as buildings, furniture, and fixtures, all logically depreciate, or loose value, over time as they age and eventually wear out, noted the plaintiffs in their complaint. Insurance companies use a rate of depreciation when it comes to insurance claims for materials. Farmers, however, applied depreciation to labor costs. Labor, alleged the plaintiffs, does not logically depreciate over time.
When Farmers included depreciation in calculating insurance claims from those that held a commercial loss policy, it withheld funds that should have been paid out in the claim, contended the plaintiffs.
Farmers admitted no wrongdoing, but agreed to a settlement to end the commercial loss class action.
Under the terms of the Farmers commercial insurance policy class action settlement, Class Members can claim half of the labor claim that was not paid due to the depreciation calculation. This amounts to 34.15 percent of the total depreciation dollar amount that was withheld from the insurance payout.
To make a claim, Class Members must submit a Claim Form online or by mail. Class Members must provide the details of their insurance claim with Farmers on the Claim Form, including the date and address of the property where the loss occurred, the policy number, and amount paid out by Farmers.
Class Members who wish to opt out of or exclude themselves from the Farmers commercial loss class action settlement must have done so by Aug. 24, 2019.
Who’s Eligible
“The Class includes all persons and entities who had a Covered Loss during the Class Period.
‘Covered Loss’ means (a) physical loss or damage to a structure located in the State of Arizona, (b) for which an Insurance Claim was made under a Commercial Insurance Policy, (c) which Insurance Claim was determined by an Insurer to be covered under the terms and provisions of the Commercial Insurance Policy, (d) which resulted in one or more payment(s) by or on behalf of an Insurer for said physical loss or damage; and (e) the Insurance Claim falls within the Class Period.
‘Insurance Claim’ means a claim for policy benefits submitted by a Class Member to an Insurer involving physical loss or damage to a structure.
‘Commercial Insurance Policy’ means a commercial line policy written by an Insurer and providing property insurance coverage for a risk located within the State of Arizona.
‘Insurer’ means Mid-Century Insurance Company, Farmers Insurance Exchange or Truck Insurance Exchange.
‘Class Period’ means the period of time (i) involving an Insurance Claim for which the date of loss was on or after August 18, 2015, and (ii) which Insurance Claim was deemed closed by the Insurer on or before February 5, 2019.”
Potential Award
Varies.
“Class Members who received a Qualifying ACV Payment and who did not recover all of the Previously-Withheld Labor Depreciation will receive 50% of the Unpaid Labor Amount. The Unpaid Labor Amount is defined as 34.15% of the total depreciation dollar amount that was withheld from the actual cash value payment(s) and never paid to the Class Member, as reflected in the Insurer’s claim file for that Class Member’s Insurance Claim…In the event the payment would result in total payments to a Class Member of benefits greater than the Class Member’s applicable limits or sub-limits of policy coverage, the payment will be capped at the amount necessary to keep the total payments to the Class Member within applicable limits or sub-limits of policy coverage.”
Proof of Purchase
The Claim Form requires information about the insurance claim, including the property address and date of loss, policy number, and insurance payout amount.
Claim Form
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
11/7/2019
Case Name
Baker, et al. v. Farmers Group, et al., Case No. 2:17-cv-03901-PHX-JJT, in the U.S. District Court for the District of Arizona
Final Hearing
9/23/2019
Settlement Website
BakerSettlement.com
Claims Administrator
Baker v. Farmers
c/o Rust Consulting Inc. – 6479
PO Box 1277
Minneapolis, MN 55440-1277
1-866-483-0378
Class Counsel
Cory S. Fein
CORY FEIN LAW FIRM
Robert D. Ryan
LAW OFFICES OF ROBERT D. RYAN PLC
Defense Counsel
Peter H. Mason
Eric A. Herzog
Cristina C. Longoria
NORTON ROSE FULBRIGHT US LLP
Steven J. Hulsman
Jared L. Sutton
LEWIS ROCA ROTHGERBER CHRISTIE LLP
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