Court Approves $5.7 Million Class Action Settlement with Sentry Insurance Company
The United States District Court for the Southern District of Illinois recently granted final approval to a $5,718,825 million class action settlement that Cohen & Malad, LLP negotiated with Sentry Insurance Company. The settlement will be paid to Sentry customers who held 6,847 auto policies across 11 states. The class action alleged that Sentry breached a “premium payback” feature of those policies, which provided for Sentry’s customers to receive a refund of one half of their annual premium at the end of each consecutive period that they were claim-free. Sentry deprived policyholders of their refunds after the company exited the auto insurance market and did not renew those policies.
The settlement results in an average payment over $550 each to class members, even after the court awarded attorneys’ fees. Payments will be mailed to class members directly. Cohen & Malad, LLP partner Richard Shevitz reported to the court at the final approval hearing that customers’ responses to the settlement have been overwhelmingly positive. He also stated that the firm received many calls expressing appreciation for its efforts in obtaining these payments for class members during this holiday season.
