Young America Insurance $1.95M Class Action Settlement

New Mexico residents who purchased uninsured/underinsured motorist coverage from Young America Insurance Co. or Loya Insurance Co. between Oct. 1, 2010, and Feb. 28, 2022, or made a claim for underinsured motorist benefits during that time may be eligible to submit a claim for a payment from a class action settlement.

Young America Insurance Co. and Loya Insurance Co. agreed to pay $1.95 million to settle a class action lawsuit alleging they failed to disclose the limitations or misrepresented the value of UIM coverage and applied improper offsets to claims in violation of New Mexico law.

Who is eligible for a settlement payout?

Class members must meet the following criteria:

• They were a policyholder of or insured under a Young America Insurance Co. or Loya Insurance Co. auto insurance policy between Oct. 1, 2010, and Feb. 28, 2022.
• They lived in New Mexico and purchased or paid premiums for an insurance policy that included UM/UIM coverage.
• They submitted a claim for UIM benefits after Oct. 1, 2010, under a policy that included UM/UIM coverage but did not have the disclosure or exclusion required by New Mexico Supreme Court in Crutcher v. Liberty Mutual Insurance Co.
• Young America Insurance Co. or Loya Insurance Co. reduced or denied their auto policy UIM benefits due to an offset for the at-fault third party's insurance limits.

How much is the class action payment?

Class members can submit a claim to receive one of the following benefits:

• UIM claim readjustment: Class members can submit a claim to have their UIM claim readjusted. The settlement administrator will determine each individual payment amount based on each individual claim. However, claimants cannot recover more than what they would have been entitled to according to their policy and cannot receive a duplicate payment for the same loss.
• The total cap for claim readjustment claims is $800,000.

• UM/UIM premium refund: Class members who paid premiums for UM/UIM coverage during the qualifying period but are not eligible for a UIM claim readjustment or choose not to file for one will receive a cash refund of a portion of all premiums paid for UM/UIM coverage. The settlement administrator will determine the payment amount by the total number of claims filed and the premium amount each policyholder paid. Class members do not need to submit a claim to receive this benefit.

How to claim a class action rebate

To receive UIM claim readjustment settlement payment, class members can file a claim online or download, print and complete the PDF claim form to mail to the settlement administrator.

Settlement administrator's mailing address: Swiech & Apodaca v. Loya Settlement Administrator, P.O. Box 2078, Portland, OR 97208-2078

Class members must submit claims online or postmark them by March 12, 2026.

Required proof and claim information

• To submit a claim, class members must provide the unique ID and PIN from their settlement notice.
• To submit a UIM claim readjustment, class members must provide may supporting documentation, such as medical records, itemized medical bills and a record release authorization.

Payout options

• PayPal
• Venmo
• Zelle
• Paper check mailed to the address provided

$1.95 million Young Insurance Co. settlement fund

The $1,950,000 settlement fund will include:

• Settlement administration costs: Amount not specified
• Attorneys' fees: Up to $649,935 plus 7.625% state gross receipts tax
• Attorneys' expenses: Up to $10,000
• Service awards to class representatives: $10,000 each
• Payments to eligible class members: Remaining settlement funds

Important dates

• Opt-out deadline: Jan. 26, 2026
• Claims filing deadline: March 12, 2026
• Final approval hearing: March 24, 2026

When is the Young America and Loya Insurance payout date?

The settlement administrator will issue payments to eligible class members after it completes claim review and processing and the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged that Young America Insurance Co. and Loya Insurance Co. violated New Mexico law by failing to properly disclose the limitations of UIM coverage and by applying offsets for the at-fault party's insurance, which reduced or denied benefits to policyholders.

The companies denied the allegations but agreed to settle to avoid the expense and risk of further litigation.

Sources

1. Class notice
2. Settlement website FAQ page
3. Official claim form