Friday, January 27, 2012

Farmers Insurance $140,000 Class Action

Farmers Insurance has settled a class action lawsuit for close to $140,000,000 for mishandling claims made by hundreds of people injured in car crashes. Because of its claims adjustment procedures, Farmers either didn’t pay at all, or didn’t pay everything it should have paid, on personal injury protection (PIP) and medical payment claims filed for medical services needed by people injured in car accidents.
The claims in question were filed from January 2001 to early February 2009. The case recently settled according to court documents (PDF). Under the settlement, claimants are entitled to 60 percent of the difference between the amount of the medical bills submitted to Farmers and the amount paid by Farmers. If you think you’re covered by the settlement and haven’t received the paperwork in the mail, you can get a claim form online.
Farmers says it settled the suit ”to avoid the burden and expense of continued litigation.” There’s speculation that Farmers settled to avoid a blockbuster jury award. Given the nationwide reach and eight-year claims period involved in the suit, who knows how much a jury could have awarded the class?
This is especially relevant when you consider Farmers’ previous experience with class action lawsuits over its PIP coverage. Earlier this year, a jury ordered Farmers to pay about $9 million on claims that it underpaid PIP claims, again, because of the process it used to determine how much to pay.

No comments: