Insurance Claim Class Action Dividend Provisions.

Byline: Derek Hawkins

7th Circuit Court of Appeals

Case Name: Rick Ochoa, et al. v. State Farm Life Insurance Company, et al.

Case No.: 18-1336; 18-1338

Officials: KANNE, SYKES, and ST. EVE, Circuit Judges.

Focus: Insurance Claim Class Action Dividend Provisions

Rick Ochoa and Irene Anderson hold participating life-insurance policies from State Farm Life Insurance Company and Country Life Insurance Company respectively. The policies guarantee policyholders annual dividends from their insurers' surpluses, but the insurers decide the dividend amounts. Dissatisfied with their dividends, Ochoa and Anderson filed nearly identical class-action complaints claiming that the dividend provisions in their policies violate the Illinois Insurance Code. In a single decision, the district court dismissed the complaints. We consolidated the appeals and...

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