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.
Delta Probing Unauthorized Wi-Fi on Flight After Hacker Event 
Taylor Farms Recalls Salsa and Guacamole Over Salmonella Risk 
Law Restricts Her From Reducing ‘Excessive’ $91M Injured Worker Award, Judge Finds 
Rhine River Shipping Stalls as Water Level Hits Record Low 
