Pacific Pioneer Insurance Company Settles With California Auto Policy Holders in Wrongful Cancellation Action |
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The parties have reached a tentative settlement in an action filed against Pacific Pioneer Insurance Company on behalf of all persons who purchased a Pacific Pioneer automobile insurance policy in California between December 18, 1996, and September 27, 2003, and who were charged a reinstatement fee after their policies were canceled for alleged non-payment of premium even though the policies were paid-up at the time the notice of cancellation was mailed. Class members must submit a signed, written request for reimbursement of reinstatement fees paid following a notice of cancellation during the stated period postmarked no later than September 27, 2003, to take part in the settlement.
The action alleged that Pacific Pioneer Insurance Company routinely cancelled automobile insurance policies before their cancellation date, and charged policyholders reinstatement penalties when they put the policy back in force. The action alleged that this conduct violated state consumer protection and insurance laws. A valid written request must identify the named insured in the Pacific Pioneer Insurance Company policy or the PPIC policy number, the policyholder's address and phone number, and the total amount of fees paid. The settlement will provide reimbursement of reinstatement fees that were charged following a notice of cancellation during the stated period.
The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for October 27, 2003.
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