Farmers Insurance Settles Class Action Lawsuit for Failure To Pay Medical Expenses For Persons Who Purchased Certain Farmers Insurance Coverage

 Posted on August 16, 2011 in Car Accidents

LOS ANGELES, Aug. 5, 2011 /PRNewswire/ -- Farmers Insurance announced today that it entered into a settlement of a nationwide class action lawsuit, In Re Farmers Med-Pay Litigation, pending in the District Court of Canadian County, Oklahoma (the "Court").

The settlement includes Farmers Insurance Company, Inc., Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, Farmers Group, Inc., Illinois Farmers Insurance Company, and certain related entities (collectively, "Farmers").  The Court preliminarily approved the settlement on June 20, 2011.

Plaintiffs alleged that Farmers failed to pay reasonable expenses for necessary medical services related to automobile accidents under Medical Payments ("Med-pay") and Personal Injury Protection ("PIP") coverage in automobile policies based on Farmers' use of certain claim adjustment systems and procedures.  Farmers denies all of Plaintiffs' claims in the lawsuit.  However, Farmers agreed to resolve the lawsuit to avoid the burden and expense of continued litigation.

The Settlement Class includes all persons who submitted claims for payment of medical bills related to an automobile accident under Med-pay or PIP coverage if (a) the claim was adjusted from January 1, 2001 to February 9, 2009 based upon a recommended reduction from Zurich Services Corporation ("ZSC"), (b) the claim was paid at less than the amount billed, and (c) total Med-pay or PIP payments were less than the respective limits of coverage.  The Class also includes medical providers who were assigned the right to assert these claims.

Individuals or medical providers with questions about the lawsuit or the settlement can visit www.MedpayClaimsAdministration.com or call 1-877-846-0588 for more information and to get a claim form.  Claim forms must be postmarked by December 29, 2011.  Those affected by this settlement can submit a claim for benefits or they can ask to be excluded from, or object to, the settlement and its terms.  The deadline for exclusions and objections is October 29, 2011.  The Court will decide whether to grant final approval of the Settlement at a Hearing currently scheduled for November 29, 2011.

If you are involved in an automobile accident, truck accident or motorcycle accident, you need an attorney experienced in dealing with insurance companies and who will aggressively seek the full compensation to which you are entitled.