Cincinnati Insurance Labor Depreciation Settlement

The Cincinnati Insurance Company has agreed to settle a class action lawsuit for alleged improper deduction of nonmaterial depreciation when adjusting certain insurance structural damage claims. Eligible claimants can receive compensation based on the amount of nonmaterial depreciation withheld from their payments.

Can I Claim an Award?

To be eligible for a settlement award, you must be a policyholder under any residential or commercial property insurance policy issued by any of the following:

• The Cincinnati Insurance Company
• The Cincinnati Casualty Company
• The Cincinnati Indemnity Company
• Cincinnati Global Underwriting Ltd.
• Cincinnati Specialty Underwriters Insurance Company

You must have had a structural loss that was a covered loss for property in Arizona, California, Illinois, Kentucky, Missouri, Ohio, Tennessee, Texas, Vermont, Virginia, Washington, or Wisconsin during the applicable "class periods".

The "class periods" are defined as follows:

• Arizona, California, Illinois, Kentucky, Ohio, Tennessee, Texas, Vermont, Virginia, or Washington, dates of loss on or after April 8, 2020, and on or before May 31, 2022.
• Wisconsin, dates of loss on or after April 8, 2021, and on or before May 31, 2022.
• For policyholders except Cincinnati Global Underwriting Ltd. with structural loss claims in Missouri, dates of loss on or after April 8, 2012, and on or before May 31, 2022.
• For policyholders of Cincinnati Global Underwriting Ltd. with structural loss claims in Missouri, dates of loss on or after April 8, 2020, and on or before May 31, 2022.

Additionally, the loss must have resulted in an actual cash value payment from which nonmaterial depreciation was withheld, or that would have resulted in an actual cash value payment but for the withholding of nonmaterial depreciation causing the loss to drop below the applicable deductible.

What Awards Can Class Members Claim?

• Class members with structural losses in Arizona, California, Illinois, Kentucky, Missouri, Ohio, Tennessee, Texas, Vermont, or Washington will receive 100% of the estimated nonmaterial depreciation that was withheld from actual cash value payments on the class member’s covered loss and not subsequently paid.
• Class members with structural losses in Virginia and Wisconsin will receive 80% of the estimated nonmaterial depreciation that was withheld from actual cash value payments on the class member’s covered loss and not subsequently paid.
• Interest Payments: Class members identified under subsections (a) and (b) will also be paid simple interest at the rate of 5% per annum on the unrecovered nonmaterial depreciation from the date of the first actual cash value payment to the date of the final approval hearing.
• Fixed Payments: Class members to whom all nonmaterial depreciation deducted from actual cash value payments was previously repaid in full will receive a fixed payment ranging from $25 to $500, depending on the amount of nonmaterial depreciation originally withheld.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim a reward. Claimants must complete and sign a claim form truthfully, accurately, and completely. If you sign a claim form as the representative of a deceased or incapacitated class member, you must also submit written proof that you are the legally authorized representative. If you are a contractor to whom an insurance claim was properly assigned by a policyholder, you must submit written proof of the assignment with the claim form.

How to Claim Your Award

To claim your award, you must complete and sign a claim form truthfully, accurately, and completely. You can mail the completed claim form to the following address, postmarked no later than July 12, 2024:

Belle Meade Labor Depreciation Settlement

c/o JND Legal Administration

P.O. Box 91490

Seattle, WA 98111

Alternatively, you can upload the completed claim form at before midnight, Eastern Daylight Time on July 12, 2024.

$1,200,000 Settlement Fund Breakdown

The settlement amount is $1,200,000. Class counsel will ask the Court for up to $1,200,000 for attorneys’ fees, costs, and expenses, and will ask the Court to award the class representative $7,500 for its efforts in representing the settlement class. Cincinnati Insurance agreed not to oppose or object to these requests up to those amounts. The Court may award less than these amounts. Cincinnati Insurance will separately pay these fees, expenses, and service award that the Court orders. These payments will not reduce the amount distributed to class members. Cincinnati Insurance will also separately pay the costs to administer the settlement.

Important Dates

• Deadline to File a Claim: July 12, 2024
• Final Approval Hearing Date: May 13, 2024

Why is There a Class Action Settlement?

The lawsuit claims that Cincinnati Insurance improperly deducted depreciation on costs of labor and general contractor overhead and profit when calculating actual cash value payments for residential and commercial structural loss insurance claims. Cincinnati Insurance has denied all allegations that it acted wrongfully or unlawfully. The Court did not decide in favor of the Plaintiff or Cincinnati Insurance and has not found that Cincinnati Insurance did anything wrong. Instead, both sides agreed to settle. That way, the parties avoid the cost of litigation, a trial, and potentially, an appeal, and those who qualify will get compensation. The class representative and its attorneys think the settlement is best for all class members. The settlement does not mean that Cincinnati Insurance did anything wrong, no trial has occurred, and no merits determinations have been made.