Farmers Insurance Interest Rate Class Action

The lawsuit was initiated by Sheila Marino, an Illinois resident, against Farmers New World Life Insurance Co., a subsidiary of Farmers Group Inc. Marino claims that her universal life insurance policy, which features an interest-bearing account, was subject to inflated monthly risk charges unrelated to mortality improvements. Furthermore, she alleges the insurer only credited the guaranteed minimum interest rate for the 2023-2024 policy year, despite earning substantially higher interest.

The claims brought forth include allegations of breach of contract, breach of the implied covenant of good faith and fair dealing, and violations of Washington consumer protection law. The court found that Marino plausibly alleged that the risk charge was not tied to specific factors, and that the insurer shortchanged policyholders on interest because the policy allowed rates above the 4.5% floor.

The case is currently pending in the U.S. District Court for the Western District of Washington, following a judge's refusal to dismiss the proposed class action. The plaintiff seeks to represent a class of individuals who own or owned Farmers New World life insurance policies with an interest-bearing savings component. The plaintiff is represented by Joshua H. Haffner, Alfredo Torrijos, and Trevor Weinberg of Haffner Law P.C.