© 2023 All rights reserved | | Version: 1.0.0.28 | Updated: 9/15/2023 10:28:18 AM
Rogowski et al. v. State Farm Life Insurance Company et al., Case No. 4:22-cv-00203-RK
State Farm’s records show that you own or owned one of the covered Flexible Premium Adjustable Whole Life (or Universal Life) Insurance policies (or were identified as the legal representative of such an owner) that was in force on or after January 1, 2002. A Court authorized the Class Notice and this website because you have a right to know about the proposed Settlement and all of your options before the Court decides whether to approve the Settlement. The Class Notice and this website explain the lawsuit, the Settlement, and your legal rights.
United States District Judge Roseann A. Ketchmark of the United States District Court for the Western District of Missouri is overseeing this case. The case is known as Rogowski et al. v. State Farm Life Insurance Company et al., Case No. 4:22-cv-00203-RK. The persons who sued, David M. Rogowski, Elizabeth A. Bally, Kathy Bauer, Kim Botte, John E. Jaunich, Mylene McClure as personal representative of the Estate of Earl L. McClure, Ronald K. Page, Chandra B. Singh, Joyce Thomas, David Toms, and William T. Whitman, are called the “Plaintiffs.” State Farm Life Insurance Company and State Farm Life and Accident Assurance Company are collectively called “State Farm.”
The following is only a summary of the Settlement. A full description of the Settlement is in the Settlement Agreement. Nothing in the Class Notice or on this website changes the terms of the Settlement Agreement. You can read the Settlement Agreement here.
Back To TopThis lawsuit is about whether State Farm’s Cost of Insurance deductions were consistent with the policy language in its Form 94030/A94030 and 94080/A94080 Flexible Premium Adjustable Whole Life (or Universal Life) Insurance policies (“Policies”). The Policies have an Account Value that earns interest at or above a minimum rate guaranteed under the Policies. The Policies expressly authorize State Farm to take a Monthly Deduction from the Account Value to cover various charges.
Plaintiffs allege that State Farm violated the Policies in two different ways. First, the Form 94030/A94030 Policy says that the Monthly Cost of Insurance Rates for each “policy year” will be “based on the Insured’s age on the policy anniversary, sex, and applicable rate class,” and the Form 94080/A94080 Policy says that the Monthly Cost of Insurance Rates for each “policy year” will be “based on the Insured’s age on the policy anniversary and applicable rate class.” Both Policies say that the rates “can be adjusted for projected changes in mortality.” Plaintiffs allege that State Farm impermissibly used factors other than those identified in the Policies when setting Monthly Cost of Insurance Rates. Second, while the Policies permit a separate Monthly Expense Charge, Plaintiffs allege that State Farm exceeds the fixed amount of this charge by considering its expenses when setting Monthly Cost of Insurance Rates.
State Farm denies all of Plaintiffs’ claims, including claims challenging the pricing of the Policies and development and application of the Monthly Cost of Insurance Rates, and asserts that, at all times, it complied with the plain language of the Policies by deducting charges from the Account Value, including but not limited to the Monthly Expense Charge and the Cost of Insurance, that are, and always have been, consistent with the language and terms of the Policies.
You can read Plaintiffs’ Second Amended Class Action Complaint and State Farm’s Answer to the Second Amended Class Action Complaint on the Important Documents page of this website.
Back To TopPlaintiffs filed eleven lawsuits, including this case, against State Farm regarding the allegations described in FAQ 2. The first case, Vogt v. State Farm Life Insurance Company, consisted of Missouri policy owners and was tried to a jury several years ago. If you were a Missouri policy owner, you may have received notice and a payment in that lawsuit. Nine additional class action cases were filed on behalf of California, Washington, Minnesota, Texas, Arizona, Oregon, Florida, Georgia, and New York policy owners, and on behalf of policy owners in Missouri who continued to own their Policies following the Vogt judgment. If you were a policy owner in California, Washington, Minnesota, or Arizona, you may have already received a class notice about those cases. This Settlement and Class Notice supersedes all prior notices you may have received, including those in Missouri, California, Washington, Minnesota, and Arizona.
Back To TopThe Parties negotiated the Settlement with an understanding of the factual and legal issues that would affect the outcome of this lawsuit. During the lawsuit, Plaintiffs, through their attorneys, thoroughly examined and investigated the facts and the law relating to the issues in this case.
Plaintiffs believe that the final outcome of the lawsuit and the other lawsuits identified in FAQ 3, if they were to proceed through trial and appeals, is uncertain. A settlement avoids the costs and risks of further litigation and provides immediate relief to the Settlement Class Members. Based on their evaluation of the facts and law, Plaintiffs, their attorneys, and the Court have determined that the proposed Settlement is fair, reasonable, and adequate. They have reached this conclusion based on the substantial benefits the Settlement provides to Settlement Class Members and the risks, uncertainties, and costs inherent in the lawsuit.
While there was a trial in the Vogt case, there has been no trial and there has been no final appellate determinations on the merits of the claims or defenses in this lawsuit or the other lawsuits. However, the trial courts in California, Washington, and Minnesota ruled against the owners of Policies issued in those states as to some or all of their claims. A copy of these orders may be found on the Important Documents page of this website, here. There will be no trial or final determination on the merits of the remaining claims and defenses if the Court approves the Settlement. The Settlement does not indicate that State Farm has done anything wrong, or that Plaintiffs and the Settlement Class Members would win or lose if this lawsuit or any of the other lawsuits were to go to trial.
Back To TopThe Settlement Class includes all persons or entities who own or owned one of the approximately 760,000 Policies issued by State Farm. Policies means all Form 94030/A94030 Flexible Premium Adjustable Whole Life (or Universal Life) Insurance policies, as well as all Form 94080/A94080 Flexible Premium Adjustable Whole Life (or Universal Life) Insurance policies that were issued and administered by State Farm or their predecessors in interest. A Policy includes all applications, schedules, riders, and other forms that were specifically made a part of the Policies at the time of their issue, plus all riders and amendments issued later. Policies include everything that was part of “The Contract,” as that term is defined in your Policy or Policies.
You are not part of the Settlement Class if you are State Farm; any entity in which State Farm has a controlling interest; any of the officers or board of directors of State Farm; the legal representatives, heirs, successors, and assigns of State Farm; anyone employed with Plaintiffs’ counsel’s law firms; or any Judge to whom this case is assigned or his or her immediate family.
If someone who would otherwise be a Settlement Class Member is deceased, his or her estate is a Settlement Class Member.
Back To TopIf you received a notice of this Settlement in the mail and did not exclude yourself, State Farm’s records indicate that you are in the Settlement Class. The Settlement Class includes all persons or entities who own or owned Form 94030 and A94030 flexible premium adjustable whole life or universal life insurance policies, as well as all Form 94080 and A94080 flexible premium adjustable whole life or universal life insurance policies that were issued and administered by State Farm.
If you are not sure whether you are included in the Settlement Class, you can get free help by sending your questions to the Settlement Administrator, in writing, to PO Box 3019, Portland, OR 97208-3019 or calling the Settlement Administrator at 1-855-475-1182. You may also email your questions to info@nationalsfcoisettlement.com.
Back To TopYou will receive a settlement check representing your share of the Settlement.
If your Policy is still in force, State Farm is not required to lower its Monthly Cost of Insurance Rates and may continue to use its current Monthly Cost of Insurance Rates. State Farm may also increase Monthly Cost of Insurance Rates if deterioration in its expectations as to future projected mortality is a material or primary reason for the increase.
Back To TopNo. The deadline to request exclusion from the Settlement passed on March 6, 2023.
Back To TopThe deadline to object to the Settlement passed on March 6, 2023.
Back To TopYes. The Court appointed the following lawyers as “Class Counsel” to represent all the members of the Settlement Class:
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Norman E. Siegel, Bradley T. Wilders, Lindsay Todd Perkins, Ethan M. Lange Stueve Siegel Hanson LLP 460 Nichols Rd. Suite 200 Kansas City, MO 64112 statefarmsettlement@stuevesiegel.com |
John J. Schirger, Matthew W. Lytle, Joseph M. Feierabend Miller Schirger LLC 4520 Main St. Suite 1570 Kansas City, MO 64111 statefarmsettlement@millerschirger.com |
If you have questions, you may contact these lawyers. You will not be charged for contacting these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.
Back To TopThe Court determined the attorneys’ fee for Class Counsel and the other lawyers who were involved in the pending cases for their work in this case. In addition to thousands of hours of labor spent on this case, Class Counsel have expended substantial expenses prosecuting this case. Class Counsel has been awarded attorneys’ fees from the Settlement Fund, plus reimbursement of Class Counsel’s costs and expenses. You are not responsible for payment of Class Counsel’s fees and expenses.
The Court has also approved a service award payment for each named Plaintiff for their service as representative on behalf of the Settlement Class. This payment was also paid from the Settlement Fund.
Back To TopThe Class Notice and this website summarize the Settlement. More details are in the Settlement Agreement. You can find a copy of the Settlement Agreement here. You may also email the Settlement Administrator at info@nationalsfcoisettlement.com, or send your questions in writing, to PO Box 3019, Portland, OR 97208-3019 or call the Settlement Administrator at 1-855-475-1182. You can review the Court’s docket in this case at www.pacer.gov.
Back To TopState Farm has agreed to fund a Settlement Fund in the amount of $325 million, which will be used to pay (1) all payments to Settlement Class Members; (2) Class Counsel’s attorneys’ fees and expenses in an amount to be approved by the Court; (3) any service awards to Plaintiffs in an amount to be approved by the Court; and (4) the expenses incurred in administering the Settlement. The Net Settlement Fund equals $325 million less the amounts described in (2) through (4) as approved by the Court.
Settlement checks will be mailed to Settlement Class Members in amounts that will vary according to a Distribution Plan. The Distribution Plan is designed to provide each Settlement Class Member an approximate pro rata portion of the Net Settlement Fund in proportion to the amount of monthly deductions actually paid by each Settlement Class Member for Cost of Insurance and Monthly Expense Charges subject to factors such as: a minimum cash payment; whether the Settlement Class Member was part of the class that received a share of the Vogt judgment; and whether the Settlement Class Member’s Policy is still in force.
The full Distribution Plan is attached to the Plaintiffs’ Motion for Preliminary Approval and is available on the Documents page of this website.
Back To TopSettlement Class Members do not have to do anything to participate in the Settlement. No claims need to be filed. The court has approved the Settlement, and checks will be mailed to Settlement Class Members in amounts that will vary according to the Distribution Plan. If someone who would otherwise be a Settlement Class Member is deceased, his or her estate is a Settlement Class Member. If your address changes, you should contact the Settlement Administrator to give them your new address.
Back To TopAll Settlement checks will be mailed no later than June 30, 2023. Please allow 10-15 business days to receive your check.
Back To TopEach settlement Class Member’s award will include (1) the minimum settlement relief payment of $10 and (2) their share of the Net Settlement Fund (after deducting all minimum settlement relief payments) that is proportional to the amount of monthly deductions actually paid by each Settlement Class Member for the Cost of Insurance and Monthly Expense Charges (Charges).
In calculating the proportionate share, the total Monthly Deductions for the Charges assessed on each Policy are adjusted by factors such as whether the Settlement Class Member was part of the class that received a share of the Vogt judgment; and whether the Settlement Class Member’s Policy is still in force.
Then, the percentage of the aggregate accumulated Charges for all Policies that is attributable to each Settlement Class Member will be calculated by dividing each Settlement Class Member’s total accumulated adjusted Charges by the total accumulated Charges for all Policies.
Back To TopTo have a check made out to someone other than the deceased Class Member's estate, you must fill out additional indemnification paperwork. Please click here to download the Legal Heir Affidavit and Indemnification Agreement. Please note that the Indemnification Agreement must be notarized and sent to the Settlement Administrator via mail at:
Rogowski v. State Farm
Settlement Administrator
P.O. Box 3019
Portland, OR 97208-3019
If you are unable to cash a settlement check made out to an estate, there are two potential options for the rightful legal heir(s) to obtain the settlement funds:
Complete the Legal Heir Affidavit and Indemnification Agreement, which can be downloaded here. After filling it out and getting it notarized, it must be returned by mail to the Settlement Administrator at:
Rogowski v. State Farm
Settlement Administrator
P.O. Box 3019
Portland, OR 97208-3019
Assuming no further documentation is needed, the check will be reissued in the name of the person(s) listed as the legal heir(s) in the Legal Heir Affidavit and Indemnification Agreement. Please ensure that you postmark the affidavit no later than November 20, 2023. Reissue requests after this date may not be honored.
Wait until after March 15, 2024, to contact the unclaimed property division of the deceased Settlement Class Member's last-known state of residence (the state where the check was originally mailed). You will then need to comply with that state's requirements to try to obtain the funds.
You can get a document notarized at various locations. Some common places to obtain a notary are:
No. The notarized Legal Heir Affidavit and Indemnification Agreement must be returned to the Settlement Administrator by mail at the following address. Additionally, it should be postmarked no later than November 20, 2023.
Rogowski v. State Farm
Settlement Administrator
P.O. Box 3019
Portland, OR 97208-3019
Please click here to download the Legal Heir Affidavit and Indemnification Agreement. Note that it must be returned to the Settlement Administrator by mail no later than November 20, 2023.
Back To TopChecks will expire 180 days after they are issued. Please cash or deposit your Settlement check promptly after receipt.
Back To TopAll checks that are not negotiated within 180 days will be escheated to the unclaimed property division of the state where each such Settlement Class Member was last sent Class Notice. After funds have escheated to the unclaimed property division, you will need to contact that state’s unclaimed property division to obtain your settlement funds.
Back To TopYes. For check reissue requests, please email the Settlement Administrator at info@nationalsfcoisettlement.com, or write to PO Box 3019, Portland, OR 97208-3019. Please allow 4-6 weeks for the check reissue to be processed. Checks will expire 180 days after the issue date.
Back To TopYes. To update a mailing address, please email the Settlement Administrator at info@nationalsfcoisettlement.com, or call 1-855-475-1182.
Back To TopSettlement awards will be issued by check only.
Back To Top1099 forms will not be provided along with Settlement checks. The Settlement Administrator cannot provide individual tax advice. The tax treatment of distributions from the Net Settlement Fund is the responsibility of each recipient. You should consult your tax advisor to determine the tax consequences, if any, of this distribution to you.
Back To Top © 2023 All rights reserved | | Version: 1.0.0.28 | Updated: 9/15/2023 10:28:18 AM