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
Please send me information regarding this Class Action Suit against State Farm
Please add me to the list of State Farm’s Universal Life Insurance ripoff
Been paying premium z for over 20 years yet being denied coverage for damages on home policy , is there help for homeowners from big insurance lawyer z please help !!
Please add Barbara A. and Gregory E. Harris to this Class Action lawsuit.
Would like to apart of the case, I bought my universal policy and always thought the fees were too high so now I see why.
Purchased a Universal Life Insurance Policy from State Farm for my son when he was 8 years of age in 1988 for 50,000.00 my son now is 42 years of age.
Would this policy be included in your Class Action Suit against State Farm? Policy Number LF-0994-7593.
Thank you for your time in the matter.
Had policy wife $25000 life taken out in 1974 .paid up 85 .price was increased .talk to agent encourage to reduce policy to $15000 and could pay out do divided to pay .$4000 use to pay payment.would receive quartley bill from State Farm .had to take bill to agent who take care of payment . Now been switched to another agent.contacted them and made quarterly payment .and now recieved new policy .told to destroy all old documents etc.something vary wrong with State Farm
Please send me any info regarding this matter. I’ve had this policy since 1988 and just was told 1 week ago that I would run out of money due to low interest being paid and the cost rising. I was advised that i would have to pay more than the annual premium in order to keep the policy active. Sad this large corporate company couldn’t tell me 25 years sooner I would be in this situation I would have taken other measure in order to secure a stronger future for my loves ones.
Please add Deborah and William Baughman to this class action lawsuit
Please add Anita Hairston to the class action suit I been with them four years
My husband has been upset about his State Farm universal life insurance policy for years. In 2001 he was contacted by a law firm that said they would represent his interests, but he said that they were representing State Farm Insurance not insureds. He received $50 for a policy that he had for 15 years since 1986.
I too would like to be added to this class action lawsuit. I have had my policy for 32 years and is caught up in the same situation as those that have state farm universal life insurance policies. Please forward me details as well so that I can help fight this injustice.
I would like to be added to this class action lawsuit. I was told when I bought this back in 86 when my daughter was born that what money we put into it was our after 10 years of having the policy we could take it out and use it for whatever reason. Next, that in 20 years the policy would be paid off and that it would pay us back. Now I am caught within a dilemma that I keep getting interest charges for money we had taken out. I am to the point where I dont want to drop the policy but will do it because I will not be able to afford this when I get to retirement. So If someone can send me an email or respond that would help out a lot.
We purchased our universal life in 1987 for 50,000 per person. in 1990 when our son was born they suggested that my husband increase his policy by 100,000 then when our daughter was born in 1992 they the suggested another in crease of 50,000, they also suggested an increase in 2011 of 25,000. They are now tell us because of these increases that his insurance with run our in 9 years, even though our original policy says 95 years of age. My policy for only 50,000 with no increases still says valid until 95 years of age. What can we do about this if anything. we were told this was a savings plan (a retirement fund) and life insurance combo. This insurance rep is really pushing a low coverage for a high premium.