UPDATE:
- The Supreme Court of the United States (SCOTUS) declined to hear State Farm’s appeal to a lower court’s ruling upholding a $34 million jury trial award on Monday, April 27, 2021.
State Farm was hit with a $34.3 million trial verdict over class action allegations that the insurer took more from universal life insurance policyholders’ accounts than permitted.
The State Farm universal life insurance deduction class action lawsuit claimed that the company used prohibited factors to calculate the cost of the universal life insurance products, leading to overpayment by policyholders.
The lead plaintiff alleged that he had overpaid by $3,000 for his $100,000 life insurance policy.
The insurance giant fought back and succeeded in getting punitive damages trimmed, arguing that it had not acted with reckless disregard or evil motive in assessing the policyholders’ rates.
However, the company also argued that the State Farm universal life insurance deduction class action lawsuit should have been dismissed because it advertised maximum costs, but did not charge policyholders over the amount advertised.
“Because State Farm charged Plaintiff COI rates consistent with the terms of his policy, there is no genuine dispute as to any material fact, and State Farm is entitled to judgment as a matter of law on all of plaintiff’s claims,” stated the motion to dismiss the State Farm universal life insurance deduction class action lawsuit.
However, a federal court judge refused to toss the State Farm universal life insurance deduction class action lawsuit in its entirety.
After a four-day trial, State Farm was hit with the $34.4 million jury verdict. The jury found that the company engaged in breach of contract and conversion as alleged in the State Farm class action lawsuit.
The company had also asked the federal court to decertify the Class in the State Farm universal life insurance deduction class action lawsuit. Class Members who were not injured by State Farms’ fee assessing practices should be removed, argued the insurer, as opposed to simply not receiving an award.
Further, argued the company, some members of the Class in the State Farm insurance class action lawsuit would actually be assessed at a higher rate.
According to the State Farm universal life insurance deduction class action lawsuit, the lead plaintiff purchased his universal life policy from the company in 1999.
The plaintiff alleged that although State Farm used age, sex, and race to determine his policy rates, the company also used “unauthorized factors” that led to a higher rate.
According to the plaintiff, this action led to him and other Class Members paying higher rates over long periods of time, 14 years in the plaintiff’s case, leading to thousands in damages.
State Farm fought the $34 million jury verdict. The Eighth Circuit Court of Appeals affirmed the jury’s decision and SCOTUS declined to hear the insurer’s arguments.
“After employing every appeal and delay tactic available to it, State Farm will finally be obligated to pay the jury verdict returned nearly three years ago,” a lawyer representing the plaintiffs told Law360 of the Supreme Court’s decision not to hear the case.
Top Class Actions will continue to monitor this lawsuit for further developments.
Are you a Class Member in the State Farm universal life insurance class action lawsuit? Tell us about your experience in the comment section below!
The lead plaintiff and Class Members are represented by Patrick J. Stueve, Norman E. Siegel, Ethan M. Lange, and Lindsay Todd Perkins of Stueve Siegel Hanson LLP and John J. Schirger, Matthew W. Lytle, and Joseph M. Feierabend of Miller Schirger LLC.
The State Farm Universal Life Insurance Deduction Class Action Lawsuit is Vogt, et al. v. State Farm Life Insurance Co., Case No. 20-1008, in the U.S. Supreme Court.
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249 thoughts onJury Awards $34.3M in State Farm Life Insurance Fees Class Action
I also have a universal life insurance policy with state farm. I closed it and I’m expecting a check from them. State Farm stated that I would receive the check by 9.9.19 haven’t received it yet. Just like the rest of the comments I’ve read. State Farm states one thing and does another. I just want my check so we can start fresh. Age
I also have a universal life insurance policy with state farm. I closed it and I’m expecting a check from them. State Farm stated that I would receive the check by 9.9.19 haven’t received it yet. Just like the rest of the comments I’ve read. State Farm states one thing and does another. I just want my check so we can start fresh. Age
Had a Universal Life policy as a young poor naive soldier since the 1990s that was almost completely drained (from thousands to hundreds) of the cash value. I was not informed of them doubling my insurance cost, from $36 to $75 then told my $75,000 policy would cost $150 a month. I cashed out my wife’s universal policy as well as my sons whole life. Something very fishy is going on with st farm reps. They seem jumpy, nervous, deceptive. I know I was ripped off and as a 100% disabled vet,(did they get into my medical records) blind spouse, and son with autism disability, I need help. It was not my fault interest rates took a dive in 2008 which they use as one of their excuses. Can I get help?
I took out a $50,000 policy on my husband in 1998. In 2018 State Farm said I owed them more money to keep the policy cause I had not paid enough to keep the account open. It was on an auto draft pmt and never late. My agent saaid he would take care of it. They cancelled the policy and never told us. I found out a few months later and they wanted a large amt of money to get the policy active again. There was no way that I owed that much more money after 20 years.
How do I contact the attorney handling this case??
I would like to be included in the State Farm Universal Life class action.
Was told by time my daughter graduates highschool I could cash it out for $20 or $30 thousand to pay for college..she’s graduating and with alk the fees they have assessed over the yrs it’s not even worth what I’ve paid into it..they initially told me it was like a savings account that earned high interest. Not!
In 2000 when my daughter was born I was told that if i got this universal life for my daughter I’d be able to cash it in for 20 to 30 thousand to pay for her college.. im not investment savy but on their annual statements it looks like they applied most of my payments to fees. 18 yrs of paying and it’s only value is a few thousand not the $20-30 thousand I was promised.
I bought 30 years life Insurance with them dose it count?let me know
I have a Life Insurance policy with State Farm. Need to know if I could be added to this lawsuit…what is involved? Posted 1/30/19
I paid for a universal life for 34 years, turned 65 and they told meud need to pay 242 a month more to maintain a 100000 policy. State Farm. Asked why they didn’t say anything until i turned 65. CRICKET’S.
My mother passed away 23 years ago. She had a life insurance policy that I just found out about. I don’t know all the details yet, as they will not give me info without a written request. My self and my brother were listed as beneficiaries. I called them they said there is 75$ cash value.