What is the Outcome of Rogowski v State Farm?

Rogowski v State Farm: A Landmark $325 Million Settlement in 2023

Rogowski v State Farm is a class-action lawsuit filed in February 2022 against State Farm Life Insurance Company. The lawsuit claims that State Farm wrongfully deducted excessive amounts from the account values of its policyholders under its Universal Life Insurance policies. In April 2023, a settlement of $325 million was agreed upon. The settlement fund will be distributed among eligible policyholders based on their losses. The final court approval for this settlement is scheduled for June 2023, with expected distributions in Fall 2023.

Background: Understanding Universal Life Insurance Policies

Universal Life Insurance policies have an account value that earns interest. State Farm guaranteed a minimum interest rate on these policies. Additionally, the company was authorized to deduct a monthly amount from account values to cover various charges.

The Allegations: What Went Wrong?

The plaintiffs in Rogowski v State Farm alleged two violations. Firstly, State Farm deducted too much money from account values. Secondly, they didn't adequately disclose the amount being deducted. The deductions were allegedly based on inflated estimates of insurance costs, and the disclosure materials were considered misleading.

The Legal Battle: District Court for the District of Minnesota

The case was filed in the United States District Court for the District of Minnesota. The plaintiffs battled to highlight the alleged violations by State Farm, which, according to them, led to policyholders losing money without even being aware of it.

The Settlement: A Win for Policyholders

In April 2023, both parties reached a settlement agreement. Under the agreement, State Farm will pay $325 million to eligible policyholders. This marks a significant win for policyholders aggrieved by State Farm's alleged misconduct.

What Next? Important Dates and Steps

The settlement is subject to court approval, with a hearing scheduled for June 2023. If approved, the distribution of funds to eligible policyholders is expected in Fall 2023. No further action is required from policyholders to receive the payment.

How Policyholders Can Stay Informed

If you're a policyholder affected by Rogowski v State Farm, visit the official settlement website, National SF COI Settlement, for more information. The website contains all the details regarding the settlement and the eligibility criteria for policyholders.

Frequently Asked Questions (FAQs)

Q: What is Rogowski v State Farm?
Rogowski v State Farm is a class-action lawsuit against State Farm Life Insurance Company for allegedly deducting excessive amounts from policyholders' account values and not correctly disclosing these deductions.

Q: When was the settlement reached?
The settlement was reached in April 2023 and is awaiting court approval, which is scheduled for a hearing in June 2023.

Q: How much is the settlement amount?
State Farm has agreed to pay eligible policyholders a $325 million settlement fund.

Q: How can I find more information if I am an affected policyholder?
Visit the official settlement website, National SF COI Settlement, for more information and updates on the Rogowski v State Farm lawsuit.