State Farm $65 Million Settlement and Award Details

State Farm has agreed to a significant settlement in a class action lawsuit, which may affect many policyholders. If you're someone who has owned specific life insurance policies from State Farm, you could be eligible for a portion of the $65 million settlement fund. This guide aims to provide you with all the necessary information to understand if you qualify, how much you might receive, and how to claim your settlement award.

Who Benefits?: Owners or previous owners of State Farm Form 86040/A86040 or 86075/A86075 life insurance policies. How much can I get?: Compensation varies, with a minimum of $10 and additional amounts based on the details of your policy.

Important Dates

• Fairness Hearing: Scheduled for March 28, 2024, at 10:00 am CST.
• Deadline to Exclude Yourself/Opt-Out from the Settlement: February 9, 2024.

Who Are the Settlement Class Members?

The Settlement Class includes individuals or entities that own or have owned one of the approximately 450,000 Form 86040/A86040 or 86075/A86075 life insurance policies issued by State Farm. These policies should have been active at any point on or after January 1, 2002.

• Current policyholders
• Former policyholders

Certain individuals, such as State Farm employees, officers, directors, legal representatives, heirs, or judges involved in the case, are excluded from the Settlement Class.

Understanding Your Settlement Award

Eligible class members will receive a share of the $65 million fund. The amount each person will receive is determined by a distribution plan that considers the monthly deductions paid for Cost of Insurance and Monthly Expense Charges.

• Minimum Payment: $10
• Additional Amounts: Calculated based on individual policy deductions

The Policies in Question

The settlement concerns Form 86040/A86040 and 86075/A86075 life insurance policies. These are flexible premium adjustable whole life (or universal life) insurance policies with cash value components affected by Cost of Insurance deductions.

Is Proof Required to Claim the Reward?

No proof is required to claim your settlement award. State Farm's records will be used to identify eligible policyholders, and the settlement administrator will distribute checks automatically.

How to Claim Your Award

If you're eligible for a settlement award, no action is required on your part. Checks will be sent to the address on file with State Farm. If your address has changed, notify the settlement administrator by April 8, 2024, at the official settlement website's Contact Us page.

What if the Policy Owner is Deceased?

In cases where a Settlement Class Member has passed away, legal heirs have specific options for receiving Settlement check payments. Normally, checks are payable to the deceased's estate, but heirs can opt for different arrangements by completing the Legal Heir Affidavit and Indemnification Agreement, available for download on the specified webpage. To have a check issued in a name other than the estate, this agreement must be filled out, notarized, and mailed to the Settlement Administrator. The notarization can be obtained at banks, post offices, libraries, or online services.

The exact timeline for the Court's decision and subsequent mailing of checks is currently unknown. The completed and notarized agreement cannot be returned via email; it must be sent by mail to the Settlement Administrator at the designated address.

Analyzing the Settlement Amount

The $65 million fund is intended to compensate affected policyholders and cover attorneys' fees, service awards, and administrative expenses. The distribution plan was designed to ensure fair and proportional payouts.

Why Is There a Settlement?

The Niewinski v. State Farm case alleged the company had been directly violating the policy's terms.

The lawsuit claimed State Farm improperly deducted costs of insurance from the cash values of certain life insurance policies. The settlement, which does not imply wrongdoing by State Farm, aims to compensate policyholders and avoid further litigation.

For further details, you can read the full Settlement Agreement at the official settlement website, or contact the Settlement Administrator by calling 1-888-431-3884 or emailing info@nationalsf86settlement.com.