Class Action Settlement Preliminarily Approved

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Class Action Settlement Preliminarily Approved

On January 26, 2016, the Klamann Law Firm won preliminary approval of a class action settlement resolving claims that Progressive Casualty Insurance Company (“Progressive”) wrongfully offered insured individuals less than they were entitled under its UM and/or UIM policy provisions.  Specifically, it is alleged that Progressive offered those who made a claim for wage loss benefits their actual gross wages less 20% to account for income taxes.  Plaintiff argues that the relevant policies do not allow for the reduction and that insured are entitled to their actual gross wages, rather than net, after tax, wages.

Although Progressive denies these allegations and does not admit liability, Progressive agreed to the settlement to put this controversy to rest.

The settlement provides that Progressive will pay to each Class Member the difference between their actual Gross Wage Loss Benefit (as defined in the Settlement Agreement) and the amount of the wage loss benefit previously paid to each Class Member by Progressive.  In other words, Progressive will make up for the 20% reduction it made in determining the wage loss benefit.  Accordingly, the total amount paid to Class Members is uncapped, as each valid, properly submitted Claim will be paid 100% of the additional UM/UIM wage loss benefits due to the class member as a result of the benefits provided under the settlement.

The settlement applies only to individuals who were insured under Missouri private passenger automobile insurance policies underwritten by Progressive and all other subsidiaries of The Progressive Corporation.

For more information, please visit or call 1-877-208-024

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