The class action was filed in June 2016, in the Western District of Missouri by Michael Vogt and other individuals who owned universal life insurance policy form 94030 issued by State Farm.
The lawsuit alleged that State Farm breached the terms of the policies by overcharging policyholders through cost of insurance provisions causing policies to lose value and in many cases lapse, leaving many without life insurance.
Trial commenced June 1, 2018 and the jury awarded $34.3 million to approximately 24,000 Missouri policyholders. State Farm appealed to the Eighth Circuit asserting various errors and Vogt cross appealed. Vogt prevailed on all issues.
"We're very happy with the court's decision to affirm the trial court," said John Schirger, co-lead counsel and founding partner of Miller Schirger LLC. "We hope that these policyholders, who for decades were unknowingly overcharged, will soon finally receive payments."
"Many insurers define the cost of their insurance fees by delineating factors outside typically considered mortality elements and in this case the costs of charges weren't outlined with specificity," said Norman Siegel, co-lead counsel and founding partner of Stueve Siegel Hanson LLP. "The court's decision affirms that, simply put – if you want to charge for it, you need to put it in the contract."