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Welcome to the Old Line Insurance Class Action Settlement web page.

This settlement has received final approval from the Court. To see a copy of the Order Approving Settlement, click here.

Payments are scheduled to be made to those who did not exclude themselves from the settlement on September 8, 2008.

If you have any questions regarding this settlement, including how your award was calculated, please go to the FAQs.

The purpose of this website is to provide information to class members in the Old Line Insurance Class Action Settlement. The Plaintiff has made the following allegations against Old Line:

A. Plaintiff claims that Class Members who paid Modal Premiums (i.e., monthly, quarterly or semi-annually) paid more per year than if they paid their premiums annually. Plaintiff claims that such additional charges were not allowed by the language of your insurance policy and are a breach of your policy contract. The difference between a single annual premium and the sum of the monthly, quarterly or semi-annual premium payments paid within a single policy year or proportionate part of a policy year is referred to as the “Dollar Difference.”

B. Plaintiff also claims that Old Line should have disclosed to Class Members the Dollar Difference between the amount of a single annual premium payment and the total premium payments for a policy year, when premiums are paid monthly, quarterly, or semi-annually, so that Class Members could make a more informed choice about which payment option to select.

C. Plaintiff also claims that the Dollar Differences between paying annually and paying monthly, quarterly, or semi-annually can be calculated as an annual percentage rate (“APR”) or as an annual interest rate (“AIR”). Plaintiff claims that Old Line should have disclosed to Class Members the APRs or AIRs of the monthly, quarterly, and semi-annual premium payments.

Old Line has responded to the allegations as follows:

A. Old Line asserts that all policyholders paid only those premiums that they agreed to pay as specified in their insurance policies. Old Line asserts that the amount of premiums is clearly set forth in each policy, and Old Line notes that all polices have been approved by the insurance regulator for each state where it was sold.

B. Old Line also asserts that it fully and properly described premium payment options and the cost of paying premiums annually, semi-annually, quarterly or monthly and that the Dollar Differences are apparent to its policyholders.

C. Old Line also asserts that it is inappropriate to characterize premium payment options as having an APR or AIR because insurance premiums are not a debt.

This site provides the following information: