Farmers Insurance announced it settled a nationwide class-action suit over car insurance payments for traffic accident-related medical expenses.
The lawsuit was pending in the District Court of Canadian County in Oklahoma. The plaintiffs alleged that Farmers failed to pay for reasonable expenses for necessary medical services under car insurance medical payments (Med-Pay) and Personal Injury Protection (PIP) coverage.
The insurer said in a press release that it denied the plantiffs' claims but agreed to resolve the lawsuit to avoid the burden and expense of further litigation.
People who made claims with Farmers for car accident-related medical bills under Med-Pay or PIP coverage are part of the settlement class if:
• the claim was adjusted from Jan. 1, 2001, to Feb. 9, 2009, based on a recommended reduction from Zurich Services Corp.
• the claim was paid at less than the amount billed,
• and total Med-Pay or PIP payments were less than the limits of respective coverage.
The settlement also includes medical providers.
More information is available at www.MedpayClaimsAdministration.com, a site set up by the court, or by calling 1-877-846-0588. Claim forms must be postmarked by Dec. 29, 2011. Those affected by the 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 Oct. 29, 2011. The court will decide whether to grant final approval of the settlement at a Nov. 29 hearing.