Fire Insurance Exchange $12M Depreciated Labor Costs Settlement

If you were shown as an insured in the declarations of a policy of insurance issued by Fire Insurance Exchange and received payment on a claim for physical loss or damage to a dwelling or other structure in Missouri from May 1, 2003, through April 17, 2018, for which labor costs were depreciated and deducted from the Actual Cash Value (ACV) payment(s) paid on the claim, you may be eligible to claim an award from a class action settlement.

Fire Insurance Exchange has agreed to pay $12,000,000 to settle a class action lawsuit for alleged breach of contract relating to the depreciation and deduction of labor costs from ACV payments.

Can I Claim an Award?

To be eligible for an award, you must meet specific criteria. You must have been shown as an insured in the declarations of a policy of insurance issued by Fire Insurance Exchange. Additionally, you must have received payment on a claim for physical loss or damage to a dwelling or other structure in Missouri from May 1, 2003, through April 17, 2018. The payment must have had labor costs depreciated and deducted from the ACV payment(s) paid on the claim.

The determination of membership in the Settlement Class was made from an extensive and detailed analysis of the thousands of claim files, payment records, and other data Fire produced in the lawsuit. The review and analysis of Fire's records were undertaken by Class Counsel and multiple insurance claims adjusting and damages experts retained by Class Counsel on behalf of Michael McLaughlin and the class.

• All persons shown as an insured in the declarations of a policy of insurance issued by Fire Insurance Exchange who received payment on a claim for physical loss or damage to a dwelling or other structure in Missouri from May 1, 2003, through April 17, 2018, for which labor costs were depreciated and deducted from the ACV payment(s) paid on the claim.

What Awards Can Class Members Claim?

If the Court approves the Settlement, Fire will make available to the members of the Settlement Class a total Settlement Fund of $12 million subject to the terms of the Agreement. The $12 million Settlement Fund will be paid in satisfaction of the more than $14 million of aggregate WLD Damages that Plaintiff is claiming on behalf of the Settlement Class.

If approved by the Court, the Settlement will provide the members of the Settlement Class who do not exclude themselves from the Settlement Class with an anticipated settlement payment averaging $498.06 per WLD Claim. The amount of each such settlement payment represents either a Minimum Settlement Payment of $20.00 or a pro rata share of the remaining Net Distributable Settlement Fund.

• Minimum Settlement Payment: $20.00 per WLD Claim.
• Average Settlement Payment: $498.06 per WLD Claim.

The Net Distributable Settlement Fund is calculated as a percentage not less than 55% of the Net Settlement Fund less the amount of any incentive award the Court determines Mr. McLaughlin should receive for his time, work, and services as the sole designated representative of the Settlement Class.

Is Proof Required to Claim the Reward?

Not applicable. The Settlement Administrator already has the information of the class members.

How to Claim Your Award

To claim your award, you can file a claim online by visiting the online claim form. Alternatively, you can mail your claim to the Settlement Administrator at the following address:

McLaughlin Settlement Administrator

PO Box 2784

Faribault, MN 55021-9784

Submitting a Claim

Follow these steps to submit your claim:

1. Visit the online claim form.
2. Enter your Rust ID Number and other required information.
3. Review your claim details and submit the form.
4. If mailing, fill out the claim form and send it to the provided address.

How do I Get Paid?

Settlement payments will be made by check sent by U.S. Mail, first-class postage prepaid, to the members of the Settlement Class. The checks will be mailed by Rust Consultants, Inc., the McLaughlin Settlement Administrator.

$12,000,000 Settlement Fund Breakdown

The total Settlement Fund is $12 million. This amount will be used to pay the claims of the Settlement Class Members, attorney's fees, litigation expenses, and an incentive award to the Class Representative.

Here is the breakdown:

• Total Settlement Fund: $12,000,000
• Net Distributable Settlement Fund: $6,265,047.27 (55% of the Net Settlement Fund less the incentive award)
• Attorney's Fees: $5,187,311.41 (45% of the Net Settlement Fund)
• Incentive Award: $75,000.00
• Litigation Expenses: $472,641.32

Important Dates

• Deadline to File a Claim: August 30, 2024
• Final Approval Hearing: September 16, 2024

When will Awards be Paid?

Awards will be paid after the Court grants final approval of the Settlement and any appeals are resolved.

Why is There a Class Action Settlement?

The Settlement was reached to resolve claims that Fire Insurance Exchange breached the terms of its Missouri insurance policies by depreciating and withholding labor costs from the ACV payments made on covered property losses.

What Happens Next?

The next steps include the Final Approval Hearing on September 16, 2024. If the Court approves the Settlement, the Settlement Administrator will begin processing the claims and issuing payments to the Settlement Class Members.