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Drivers who were injured in a collision and had Pekin Insurance Co. pay them the policy limit for uninsured or underinsured motorist coverage on one vehicle when their policy also covered one or more other vehicles may qualify to receive a cash payment from a class action settlement.
Pekin Insurance Co. agreed to pay $12.45 million to settle a class action lawsuit alleging it failed to comply with Arizona law when handling uninsured and underinsured motorist claims for policies covering multiple vehicles. The lawsuit claimed Pekin did not provide the required policy language and notice, which may have entitled policyholders to higher payouts by “stacking” coverage across more than one vehicle.
Who are the class members?
Class members must meet all of the following criteria:
- They were insured under a policy issued by Pekin Insurance Co. in Arizona that included uninsured and underinsured coverage for more than one motor vehicle.
- They made a claim for UM or UIM coverage between April 18, 2016, and Nov. 4, 2024.
- They either received a claim payment equal to the limit of liability for UM or UIM benefits for one vehicle or
- Were one of multiple claimants in a claim related to a single incident where the total paid was equal to the per-incident limit for one vehicle.
How much can class members get?
Pro rata payment: The total settlement fund is $12,450,000. After deducting notice and administration costs, attorneys’ fees and expenses and a service award to the class representative, the remaining funds will be distributed to class members.
Each class member’s payment will be proportional to their available uninsured and underinsured coverage and their individual damages, referred to as their “claim value.” The final payment amount for each class member will depend on the total number of valid claims and the class member's proportional claim value. For example, if one class member’s claim value is twice as high as another’s, they will receive twice as much from the fund. If some class members opt out, the settlement fund will be reduced by their share, and the remaining funds will be reallocated among the remaining class members.
No claim form required
Class members do not need to file a claim to receive a payment. The settlement administrator will use Pekin’s records to identify class members and send payments directly. Eligible class members will automatically receive a payment after the settlement receives final approval.
Payout options
The settlement administrator will mail paper checks to eligible class members at the address on file. Those whose address has changed should contact the settlement administrator to update their information.
$12.45 million settlement fund breakdown
The $12,450,000 settlement fund covers:
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $3,735,000
- Attorneys’ expenses: Up to $30,000
- Service award to class representative: Up to $7,500
- Payments to eligible class members: The remainder of the fund
Important dates
- Exclusion deadline: Aug. 12, 2025
- Final fairness hearing: Sept. 11, 2025
When is the Doyle v. Pekin Insurance Company payout date?
Payments will be sent to class members approximately 91 days after the court grants final approval of the settlement and any appeals are resolved.
Why is there a class action settlement?
The class action lawsuit alleged Pekin Insurance Co. failed to comply with Arizona law regarding uninsured and underinsured coverage for policies insuring more than one vehicle. Specifically, the plaintiff claimed Pekin did not include the required policy language or provide timely written notice to customers about their right to select coverage, which could have entitled them to higher payouts by stacking coverage.
Pekin denies all allegations of wrongdoing. Both sides agreed to settle the case to avoid the risks and costs of continued litigation.
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