State Farm Settles Life Insurance Overcharge Lawsuit for $65 Million

Checks are going out in a $65 million settlement of a class action lawsuit against State Farm Life and Accident Assurance Company.

Attorneys had accused State Farm in a federal court in Missouri of overcharging on policies. The settlement involves about 450,000 policy holders who bought universal life insurance from the Bloomington-based company between 1986 and 1993.

State Farm allegedly used outdated mortality tables developed for the National Association of Insurance Commissioners by the Society of Actuaries that reflected shorter lifespans for people than is the true average in newer official tables. That means premiums would be higher than they should have been.

Read more at WGLT