NU Online News Service, Aug. 10, 10:22 p.m. EST
Farmers Insurance Group says it has reached a settlement of a class-action lawsuit alleging the insurer underpaid medical expenses related to automobile accidents.
Farmers continues to deny the allegations but says it chose to settle the lawsuit "to avoid the burden and expense of continued litigation."
The class alleged Farmers failed to pay reasonable expenses for medical services based on the insurer's use of certain claim adjustment systems and procedures.
The settlement includes Farmers Insurance Co., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Co., Farmers Group Inc., Illinois Farmers Insurance Co. and other subsidiaries.
The settlement was preliminarily approved in the District Court of Canadian County, Okla., where the class-action suit (In Re Farmers Med-Pay Litigation) was pending.
The settlement class is made of policyholders whose claims for medical payments related to an auto accident under med-pay or personal injury protection (PIP) coverage were adjusted between Jan. 1, 2001 and Feb. 9, 2009 and whose claims were paid at less than the amount billed and med-pay PIP payments were less than the limits of coverage.
More information can be found here.
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