Major insurance settlement reshapes consumer protections. State Farm has agreed to establish a $20.93 million fund to compensate customers in New Mexico who purchased U Coverage policies between 2010 and 2021. The class action lawsuit alleged the company engaged in intentional misrepresentation by selling coverage described as essentially illusory. Eligible policyholders can receive up to 21 percent of premiums paid for minimum limits coverage and 13 percent for non-minimum limits coverage. The settlement class encompasses all customers who purchased these specific policies during the twelve-year period. Claims must be submitted by July 2nd, with the final settlement hearing scheduled for June 8th. State Farm maintains it denies any wrongdoing despite the agreement.
