Frontier Insurance Labor Depreciation Settlement

TL;DR

Who Benefits?: All policyholders under any Commercial or Personal Lines property insurance policy issued by Frontier, who made a Structural Loss claim for property located in the State of Illinois during the applicable Class Periods.

How much can I get?: Payments vary, with the average estimated to be $1,722.06 for most Class Members and approximately $60.40 for "interest only" Class Members.

Detailed Analysis of the Settlement Amount

The settlement reached in the class action lawsuit against Frontier-Mt Carroll Mutual Insurance addresses the alleged improper deduction of labor depreciation from insureds' actual cash value payments when adjusting certain insurance claims in Illinois. The settlement aims to compensate those who were affected by these deductions.

The compensation structure has been carefully designed to ensure fairness and adequacy. For Class Members who complete and sign a Claim Form and timely mail it to the proper address, or submit the Claim Form by uploading it on the Settlement Website, may be eligible for a payment. The settlement offers 112.5% of the net estimated labor depreciation that was withheld and not subsequently paid. This also reflects a commitment to not only reimburse but also acknowledge the inconvenience caused.

Important Dates

• Fairness Hearing: October 26, 2023
• Deadline to File a Claim: December 15, 2023

Who Are the Class Members?

Class Members are defined as those who held a property insurance policy with Frontier and made a claim for structural loss within Illinois during the Class Period, which spans from February 28, 2020, to September 17, 2021. These claims must have resulted in an actual cash value payment from which labor depreciation was deducted or would have resulted in a payment if not for the deduction causing the loss to fall below the deductible.

• Policyholders with Structural Loss claims
• Policyholders with Covered Loss claims

Exclusions apply to policyholders whose claims were under policy forms that expressly permitted labor depreciation deductions or whose claims exhausted the insurance limits, among others.

Settlement Awards Details

Class Members who submit a valid and timely claim form may be eligible for a payment. The settlement provides two tiers of payments. For most Class Members, the payment is calculated at 112.5% of the net estimated labor depreciation. For those who recovered all outstanding labor depreciation through the claims process, a one-time payment of 2.5% to 10% of the initially withheld amount is offered, depending on the duration of the withholding.

• Majority of Class Members: 112.5% of net estimated labor depreciation
• "Interest Only" Class Members: One-time payment ranging from 2.5% to 10%

Subject of the Settlement

The settlement specifically addresses the deduction of labor depreciation from payments for covered structural loss claims under Frontier's property insurance policies in Illinois.

• Deduction of labor depreciation
• Structural loss claims

Is Proof Required to Claim the Reward?

Claimants will need to submit a completed and signed Claim Form, potentially with additional proof of legal representation if filing on behalf of a deceased or incapacitated Class Member or proof of claim assignment if filed by a contractor.

Why Is There a Class Action Settlement?

The class action settlement arises from allegations that Frontier-Mt Carroll Mutual Insurance did not properly handle the depreciation of labor costs in certain insurance claims. The settlement is a result of negotiations between the parties aimed at compensating affected policyholders without the need for protracted litigation. Claimants are encouraged to submit their claims by the deadline to receive their due compensation.