Posted at 4:53 p.m., Tuesday, October 24, 2006
State Farm pays $1.2M to settle class action suit
Advertiser Staff
State Farm Insurance has paid more than $1.2 million to settle a class action suit that alleged the company improperly used credit scores of 1,681 Hawai'i customers to set their insurance rates, attorneys for the customers said yesterday."Hawaii law is absolutely clear — an insurance company cannot set rates for auto insurance using credit scores," said Jeff Crabtree, one of the attorneys representing the customers.
The suit resulted in premium refunds being paid to 1,396 of the customers who participated in the suit. The remaining 285 customers with claims totaling $174,494 have not been found, but can still claim their checks from State Farm, according to the attorneys.
State Farm denied liability in agreeing to the settlement, the attorneys said.
