IF YOU PURCHASED COMMERCIAL INSURANCE POLICIES FROM JANUARY 1, 1998 THROUGH DECEMBER 31, 2004, A CLASS ACTION SETTLEMENT MAY AFFECT YOUR RIGHTS
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IMPORTANT DATES & DEADLINES
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| Exclusion Deadline |
August 30, 2011 - Deadline has passed |
| Objection/Comment Deadline |
August 30, 2011 - Deadline has passed |
| Settlement Approval Hearing |
September 14, 2011 |
UPDATE - MARCH 26, 2012: A decision has still not been rendered at this time. Please check back for updates.
UPDATE - JANUARY 19, 2012: A decision has still not been rendered at this time. Please check back for updates.
UPDATE - SEPTEMBER 29, 2011: The Fairness Hearing was held on September 14, 2011. A decision has not been rendered at this time. Please check back for updates.
WHAT IS THIS NOTICE?
There is a proposed Settlement of a class action lawsuit with certain insurance companies and brokerage firms who are Defendants in the suit. A court has authorized the issuance of the notice in order to inform individuals and entities that may be affected by the Settlement about their options, including their right to exclude themselves from the Settlement, object, or appear at the hearing, before the Court decides whether to approve the Settlement.
WHAT IS THIS CLASS ACTION ABOUT?
Several proposed class actions were filed against the Defendants. The Class Action is pending in the United States District Court for the District of New Jersey. Plaintiffs in the Class Action allege that the Defendants violated the Sherman Act, the Racketeer Influenced and Corrupt Organizations Act, state antitrust law and common law by, among other things, allocating insurance policies or customers among the Insurer Defendants in return for the Insurer Defendants’ payment of certain commissions to the Broker Defendants, and engaging in other improper conduct with respect to the solicitation of bids for the policies. The Settling Defendants deny the allegations made against them.
WHOM DOES THE SETTLEMENT AFFECT?
The Settlement affects members of the Settlement Class. The Settlement Class is defined as: All persons and entities that, during the period from January 1, 1998 through December 31, 2004, inclusive, purchased commercial insurance policies from any of the Insurer Defendants through any of the Broker Defendants, or from another insurer after soliciting insurance policy quotes or indications from any of the Insurer Defendants through any of the Broker Defendants, except to the extent that a Broker Defendant was acting as a managing general agent or managing general underwriter for an Insurer Defendant or through a captive program.
The Broker Defendants for purposes of the Settlement Class definition are Marsh, Aon , Wells Fargo/Acordia and Willis/HRH, along with their affiliated entities.
The Insurer Defendants for purposes of the Settlement class definition are Ace, AIG, American Re/Munich , Axis, Chubb, CNA, Crum & Forster, Fireman’s Fund, Liberty Mutual, Travelers, The Hartford, XL, along with their affiliated entities.
WHAT DOES THE SETTLEMENT PROVIDE?
The Settling Defendants have collectively agreed to pay $41 million to settle the claims against them. After deduction of certain fees and expenses from this amount, as permitted by the Court, 85% of the remaining money will be paid to purchasers of Excess Casualty Insurance Policies from certain of the Settling Insurer Defendants through Marsh and/or its affiliates, and 15% of the money will be used to fund a cy pres award, to Consumer Action and the Public Entity Risk Institute and/or other recipients designated by the Court.
WHO WILL RECEIVE A PAYMENT?
Payments will be made only to class members that purchased excess casualty insurance policies from certain of the Settling Insurer Defendants through Marsh and/or its affiliates. If you are an Excess Casualty Claimant entitled to a payment, you do not need to do anything. Payments to Excess Casualty Claimants will be calculated and made based on the information that your insurer has about the policy you purchased, the premium paid and information about your participation in other settlements concerning this same conduct.
WHAT ARE MY LEGAL RIGHTS?
If you do not want to be legally bound by the Settlement, you must exclude yourself in writing from the Class. The deadline for Exclusion is August 30, 2011. If you do not exclude yourself, but instead stay in the class, you may object or comment on the Settlement by August 30, 2011. The Court will hold a Hearing on September 14, 2011, at 12:00 p.m., in Courtroom 2B, Martin Luther King, Jr. Federal Building & U.S. Courthouse, 50 Walnut Street, Newark, NJ 07101, to determine whether to approve the Settlement. If the Court approves the Settlement, then the settling defendants will be dismissed from the action and any class member that has not properly excluded itself from the Settlement class will be deemed to have Released the Settling Defendants from all claims related to the Class Action and will not be able to sue the Settling Defendants for any of the conduct that was the subject of the Class Action. You or your own lawyer may ask to appear and speak at the hearing at your own expense.
For more detailed information, please review the Detailed Notice and Court Documents.