June 29, 2020 / 11:59 AM / 17 days ago

8th Circuit affirms $34M verdict against State Farm for fees based on undisclosed factors

A federal appeals court has ruled that State Farm Life Insurance Co. owes a class of Missouri policyholders more than $34 million for promising that a monthly charge would be “based on” a certain set of variables without disclosing that the formula also included profits, expenses, taxes and other business-related factors.

The 8th U.S. Circuit Court of Appeals on Friday affirmed a 2018 jury verdict and pretrial rulings by a Missouri federal judge, who had certified the case as a 25,000-member class action and found that the cost of insurance (COI) provision of State Farm’s whole life insurance policy was ambiguous and should be construed against it under Missouri law.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2Zfgxoq

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