The Klamann Law Firm Wins Final Approval of Class Action Settlement with Progressive Insurance

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The Klamann Law Firm Wins Final Approval of Class Action Settlement with Progressive Insurance

On July 6, 2016, the Klamann Law Firm won final approval of a class action settlement resolving claims that Progressive Casualty Insurance Company (“Progressive”) wrongfully offered and paid insured individuals less than they were entitled under its UM and/or UIM policy provisions.  Specifically, the class action lawsuit alleged that Progressive paid to those who made a claim for wage loss benefits their actual gross wages less 20% to account for income taxes.  Plaintiff argued, on behalf of herself and a class of similarly situated individuals, that the relevant policies do not allow for the 20% reduction and that insureds were entitled to 100% of their actual gross wages.

Although Progressive denied the allegations and did not admit liability, it agreed to the settlement to put the controversy to rest.

The settlement requires that Progressive 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.

Andrew Schermerhorn argued the case on behalf of Plaintiff and the Class. The Class was represented John Klamann, and Andrew Schermerhorn of The Klamann Law Firm; Wm. Dirk Vandever of The Popham Law Firm; and the Law Office of Farrell Hockemeier.

For more information, please visit www.MOWageSettlement.com.

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