Thousands of policyholders may be eligible for payments as aresult of a class-action settlement between Nationwide MutualInsurance Co. and several other affiliated companies.

Despite claiming that it properly resolved and settledhomeowners' claims, Nationwide agreed to settle a suit alleging itunderpaid claims on structural damage since 1996. Specifically, thelawsuit claimed that Nationwide underpaid policyholders by nottaking into account general contractors' overhead and profit whenit paid certain claims involving damage to a building or otherstructures. Homeowners who submitted claims from 1996 through March20, 2009, or who received a payment during that period, may beaffected.

Nationwide maintains that it properly resolved and settledhomeowner's claims but agreed to settle the suit to avoid the costand distractions of prolonged litigation. An Arkansas circuit courtwill hold a hearing about whether to approve the settlement or not.To qualify as part of the settlement, policyholders must have had aloss that included estimated repairs involving three or more“trades,” excluding emergency remediation services. They must havefiled a timely claim for a structural loss, were not paid thepolicy limits of their coverage, and were not paid by Nationwidebased on a general contractor's estimate.

Payments to eligible class members will be 20 percent of theamount previously paid to complete repairs, excluding amounts paidfor emergency remediation services, minus any GCO&P previouslypaid by Nationwide. Payments will also be limited by the terms ofthe homeowner's policy involved.