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State Farm Agrees to $31 Million Settlement

Case ID: 4899

Amount At Issue: $31,000,000.00

Category: Insurance

Last Update: 08/16/2006

Country:

State Farm agreed to a $31M settlement for class-action billing dispute
Insurer hopes to end dispute over whether it should have told policyholders about UIM rules.

After more than 10 years of legal wrangling, State Farm Mutual Automobile Insurance Co. has agreed to settle an Ohio class-action lawsuit for $31 million.

The lawsuit, brought against the Bloomington, Ill.-based insurer in 1995, alleged that despite an October 1994 state law that did away with the need for separate uninsured motorist policies for every vehicle in a household, the company continued to charge separate premiums without notifying policyholders it was no longer a requirement.

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