UPDATE:
- The Supreme Court of the United States (SCOTUS) declined to hear State Farmโs appeal to a lower courtโs 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 policyholdersโ 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 policyholdersโ 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.
โBecause 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 plaintiffโs claims,โ 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 Farmsโ 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 โunauthorized factorsโ 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 plaintiffโs case, leading to thousands in damages.
State Farm fought the $34 million jury verdict. The Eighth Circuit Court of Appeals affirmed the juryโs decision and SCOTUS declined to hear the insurerโs arguments.
โAfter 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,โ a lawyer representing the plaintiffs told Law360 of the Supreme Courtโs 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
Count me in. Have had State Farm for over 30 years
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Have several life ins policies thru SF please add myself to this class action suit
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I have 2 life insurance policies. Term and whole life. Also 2 vehicles full coverage and renters insurance Bundle deal I sopose. Please add me i
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i had one on my daughter and every month what I thougth was coming out would be a different amt one time enough to make me over draft when ask about it was told charges change every month for about a year every other month than I told them no way I could have it on auto draft because payment were never the same and they told me pay the whole cost up front finally afte couple over draft I cancell the policy
Iโve been pay g on a policy of $100,000 for 18 years. Please add me
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Add me I have a policy with State Farm
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Sign me up! Iโve been paying on a $100,000 policy for 2o years. Itโs a term policy and I donโt know if that counts or if it must be whole life.
Add me
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Add me
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Add me
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