The parties have reached a tentative nationwide $5 million settlement in an action filed against major cellular phone services and three insurance companies on behalf of all persons who purchased wireless equipment insurance between January 1, 1986, and February 20, 2004, through a wireless equipment insurance program administered by Asurion Insurance Services, Inc., Lockton Companies, Inc., or Lock\Line, LLC. The action alleged that the insurance programs failed to comply with applicable state insurance statutes and were marketed in a manner that failed to comply with Pennsylvania's consumer protection statutes. Proof of claim forms must be postmarked on or before August 9, 2004, to be considered valid.

The cellular defendants named in the action are: Verizon Wireless, Price, Alltel, Sprint PCS, Cingular Wireless, AT&T Wireless, Centennial Communications, Rural Cellular, Dobson Cellular, and Western Wireless.

As part of the settlement, the defendants will provide long distance phone cards with a $0.10 per minute retail value, for a maximum potential value of 50 million minutes, which will be divided on a pro-rata basis among all persons who submit a valid proof of claim. The actual value of each of the cards will be determined based on the number of settlement participants. Each participant will be entitled to receive a phone card with a face value of up to $5.00. The cards will expire 180 days after the date on which they are issued or at such other date as may be ordered by the court. They will be transferable, meaning that participants will be able to give them to other people.

The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for November 4, 2004.