Farmers Short Rate Litigation

Welcome to the Farmers Short Rate Litigation website.

This website contains information regarding a class action lawsuit known as Craig Streit, et al. v. Farmers Group, Inc., et al., Case No. BC434852. The lawsuit challenges the way Farmers calculated the return of premium when policyholders cancelled their policies before the end of the policy term. The lawsuit alleges that, instead of calculating the return of premium on a pro rata basis, corresponding to the unexpired time, Farmers used a method of calculation that led to a smaller return of premium.

Farmers has denied all liability and asserts that the method it used to calculate the return of premium was expressly authorized by the insurance policy. The Court has not yet decided whether Farmers did anything wrong. This is NOT notice of a settlement or judgment, no money is presently available to class members, nor is there a guarantee that there will be.

THE CLASS

The Court decided that all policyholders in California whose policies were issued by Fire Insurance Exchange or Mid-Century, who cancelled their policies midterm, and whose return of premium Farmers calculated on a basis other than pro rata for refunds during the period from April 1, 2006 to May 11, 2015, are Class Members.