A California appeals court says Farmers Insurance broke the law by failing to disclose a $5 service charge — but the company won’t have to pay back more than $115 million it collected.
The 4th District Court of Appeal in Santa Ana ruled that Farmers did violate a state code by failing to disclose the $5 it adds to monthly premiums to cover billing costs. The fee isn’t charged to customers who pay the premium in a lump sum.
A class-action lawsuit accused Farmers of unfair competition and a lower court in San Diego ordered it to repay policyholders about $115.6 million.
But the appellate court threw out the award, saying the plaintiff lacked standing to sue because he didn’t show he would have rejected the policy because of the fee.
Topics Agribusiness
Was this article valuable?
Here are more articles you may enjoy.
Hurricane to Threaten Hawaii With Flooding Over Weekend 
Online Insurance Marketplace Insurify Blocks Meta’s Personal AI Agent Muse 
Florida OIR Approves Four More HO Rate Cuts as Citizens Keeps Shrinking 
Claims Against NYC Rental Buildings Nearly Doubled Since 2021: Milford Street 
