CENTURY FACES CLASS ACTION

On Jan. 2, a class action lawsuit was filed against 21st Century Insurance Co. on behalf of policyholders who filed timely property damage claims stemming from the 1994 Northridge earthquake but whose claims were mishandled. The complaint charges that 21st Century (formerly 20th Century Insurance) took part in unfair and fraudulent business practices to minimize the amount of benefits it had to pay to insureds who incurred property damage during and after the Jan. 17, 1994, Northridge earthquake. More than 4,000 21st Century policyholders may be part of the class, according to the plaintiff attorneys in the case. Under a new law that went into effect on Jan. 1, 2001, policyholders have a right to sue their insurance companies to force them to reopen previously filed insurance claims relating to the Northridge earthquake. But plaintiffs attorneys in the suit say this case is different, because the suit also seeks to halt the alleged unethical business practices that created the situation.

Topics Lawsuits