Missouri Jury Awards More Than $34 Million To State Farm Policyholders

JEFFERSON CITY, Mo., June 7, 2018 /PRNewswire/ -- After two hours of deliberations, a federal jury in Missouri awarded more than $34 million to State Farm policyholders in a class action trial.  The class action was brought on behalf of around 24,000 current and former owners of universal life insurance policies issued in Missouri.  Universal life insurance is a type of life insurance that includes an interest-bearing savings account from which the insurer deducts money each month to cover the cost of the life insurance.  The jury found that State Farm systematically overcharged its policyholders for 23 years.

For More Information Go To: www.stuevesiegel.com/ssh/investigations/cost-of-insurance, or www.millerschirger.com/docs/investigations.php.

"We are very pleased with the jury's verdict," said John Schirger, one of the trial lawyers, who has represented policyholders in over a dozen similar cases.  "It represents 94% of the damages we requested.  The jury was very attentive to the details of complex actuarial concepts and mathematics and rendered a verdict that will restore lost account values to approximately 24,000 Missourians."  If the award is sustained on appeal, class members will be notified of the right to share in the settlement at a later date.

The case is one of several cases across the country being prosecuted by Stueve Siegel Hanson LLP and Miller Schirger LLC against insurance companies for overcharging universal life insurance policyholders.  In a pretrial ruling, the Court determined that State Farm violated the 94030-25 policy as a matter of law.  The jury was asked to determine if the violation caused damages to policyholders and, if so, the amount of those damages.  The trial lasted three days. 

"This is a great story of the little guy taking on a huge company and winning," said Norm Siegel, who delivered the opening and closing arguments to the jury.  "The most egregious aspect of these cases is that there is no reasonable way for a policyholder to know that they're being overcharged because the overcharge is hidden behind a complex, actuarial 'cost of insurance rate' that is indecipherable to the average person.  You have to hire a lawyer and actuary to deconstruct that rate and compare it to the proper rate to know you're being damaged.  You can be overcharged for decades without knowing, which is what the jury found here." 

Stueve Siegel Hanson and Miller Schirger have looked at dozens of policies like the one at issue in this trial, and continue to evaluate such claims and prosecute similar cases across the country.  They have obtained settlements making available relief valued at over $2 billion to policyholders.

About the Firms

Stueve Siegel Hanson LLP is a Kansas City, Missouri based law firm representing businesses and individuals in high stakes litigation on a contingency fee model. The firm includes over 20 lawyers and represents plaintiffs and defendants nationwide in complex business, class action, wage and hour, environmental, and product liability litigation and trials. www.stuevesiegel.com.

Miller Schirger LLC is a Kansas City, Missouri based law firm focused on resolving complex disputes on behalf of businesses and individuals nationwide. The firm has a proven track record of success representing plaintiffs and defendants in state and federal trial and appellate courts, before administrative and regulatory tribunals, and in arbitration and other alternative dispute resolution proceedings nationwide.  www.millerschirger.com.

To interview an attorney about the trial, contact:

• Norm Siegel, 816-714-7100, [email protected]
• John Schirger, 816-561-6500, [email protected]

SOURCE Stueve Siegel Hanson