Green Labor Depreciation Settlement
www.GreenLaborDepreciationSettlement.com

Frequently Asked Questions

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1. What is this lawsuit about?

The lawsuit claims that American Modern improperly deducted depreciation attributable to costs of labor when adjusting some homeowners’ insurance claims in Arkansas.

American Modern has maintained that it paid claims when reasonable and appropriate to do so and has denied all allegations that it acted wrongfully or unlawfully.

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2. What American Modern companies are part of the settlement?

The settlement includes American Modern Home Insurance Company, American Family Home Insurance Company, American Western Home Insurance Company, American Southern Home Insurance Company, American Modern Select Insurance Company, American Modern Surplus Lines Insurance Company, Consumers County Mutual Insurance Company and American Modern Insurance Group, Inc.

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3. Why is there a settlement?

The Court did not decide in favor of the Plaintiffs or American Modern, and has not found that American Modern did anything wrong. Instead, both sides agreed to settle. That way, the parties avoid the cost of a trial and potentially an appeal, and the people who qualify will get compensation. The Class Representatives and their attorneys think the settlement is best for all Class Members. The settlement does not mean that American Modern did anything wrong, no trial has occurred, and no merits determinations have been made.

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4. What is a Class Action lawsuit?

In a class action, one or more people called “Class Representatives” (in this case Pamela Green and Gary Edwards) sue on behalf of people who have similar claims. All these people are a “Class” or “Class Members.” One court resolves the issues for all Class Members, except for those who exclude themselves from the Class.

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5. Who is included in the Settlement?

The Class included Persons who had a Covered Loss, where the claim was paid at less than the limit of liability (accounting for deductible), and where American Modern made an indemnification payment that included a deduction for depreciation of labor, or would have resulted in an indemnity payment for Structural Loss but for the deduction of labor depreciation. A Covered Loss means a first party insurance claim for Structural Loss, as defined below, that (a) occurred in Arkansas during the Class Period between April 11, 2009 through April 11, 2014; (b) American Modern or a court determined to be covered under an Arkansas homeowners insurance policy issued by American Modern; and (c) resulted in an indemnity payment for Structural Loss by American Modern, or would have resulted in an indemnity payment for Structural Loss but for the deduction of labor depreciation. Structural Loss means physical loss or damage to a home, building, manufactured home, condo, farm/ranch, rental dwelling, or other structure in Arkansas while covered by a homeowners insurance policy issued by American Modern.

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6. How can I get a Claim Settlement Payment?

The deadline for obtaining a Claim Settlement Payment has now passed. Claim Settlement payments were mailed on December 11, 2017 to eligible Class Members who submitted timely and valid claim forms.

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7. How much will my payment be?

Class Members who completed and signed a claim form and timely mailed it to the proper address, or timely submitted the claim form online, may have been eligible for a Claim Settlement Payment. Under the settlement, American Modern agreed to pay 90% of the estimated labor depreciation that was withheld and not subsequently paid to a Class Member, plus 5% prejudgment interest on that amount, subject to some exclusions. You must have timely submitted a claim form in order to determine whether and how much estimated labor depreciation was withheld from your insurance claim payment. If you did not submit a claim form, you did not receive a Claim Settlement Payment.

If American Modern’s information or your estimate shows that labor was depreciated but the amount of labor depreciation was not separately itemized, your Claim Settlement Payment was based on the assumption that 42% of the total depreciation was for labor depreciation. For additional details on the payment terms, please see the Settlement Agreement by clicking here.

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8. If I was eligible, when were Claim Settlement Payments mailed

Payments were mailed on December 11, 2017 to eligible Class Members who submitted timely and valid claim forms. In accordance with the Settlement Agreement, all checks must have been cashed by March 12, 2018. All checks not cashed by that date are void and cannot be reissued.

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9. Will I owe any income taxes for a settlement payment that I received?

Please consult your tax advisor concerning any tax liability associated with your Claim Settlement Payment. The tax treatment of a Claim Settlement Payment is the responsibility of each recipient. Neither the Settlement Administrator nor the Parties can provide tax advice.

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10. Will this settlement/my participation affect my insurance?

Your participation in this settlement will not affect your insurance coverage.

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11. Who are the lawyers representing the Class?

The Court appointed the following law firms to represent you and other Class Members as “Class Counsel”: Keil & Goodson; Mattingly & Roselius, PLLC; Murphy, Thompson, Arnold, Skinner & Castleberry; Crowley Norman LLP; James M. Pratt, Jr., P.A.; Kessler Topaz Meltzer & Check, LLP; and Taylor Law Partners.

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12. How will the lawyers and Class Representatives be paid?

The Court approved Class Counsel’s request for $820,448.66 to cover attorneys’ fees and reimbursement of their expenses, as well as incentive awards of $5,000 to each Class Representative for their efforts in prosecuting this litigation These payments, which were paid by American Modern, did not reduce the amount distributed to Class Members. American Modern also separately paid the costs to administer the settlement.

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13. Will I have to pay the lawyers?

You do not have to pay Class Counsel.

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14. What was the purpose of the Final Approval Hearing?

At the Final Approval Hearing on May 24, 2017, the Court approved the settlement as fair, reasonable, and adequate. The Court also decided to award Class Counsel $820,448.66 as fees and expenses for representing the Class and to award the Class Representative $5,000 as incentive awards.

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15. Where can I get more information?

The notice summarizes the settlement. More details can be found in the Settlement Agreement, which can be found on this website by clicking here

Please do not call or write the Court, the Judge or her staff, or American Modern or its counsel for information or advice about the settlement.

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16. When will I receive my payment?

Checks were mailed on December 11, 2017 to eligible class members who submitted timely and valid claim forms. In accordance with the Settlement Agreement, all checks must have been cashed by March 12, 2018. All checks not cashed by that date are void and cannot be reissued.

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17. How was my payment calculated?

Class Members who timely submitted an eligible Claim Form received a check for the Claim Settlement Payment equal to 90% of the estimated amount of Labor Depreciation deducted from all payments for a Covered Loss to such Class Members, plus prejudgment simple interest at the rate of 5% per annum on the Labor Depreciation portion of the payment, from the date of the first actual cash value payment on the Covered Loss to the Effective Date of the Settlement.

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18. I received my check; however, I would like to dispute the amount. How do I dispute my Claim Settlement Payment?

The information included with your payment explained how you could have disputed a Claim Settlement Payment by requesting final and binding arbitration by a Neutral Evaluator. The deadline to dispute the amount of your payment was January 25, 2018.

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19. I received a Disposition Notice that my claim was denied. What can I do if I disagree with the denial?

If you received a Disposition Notice denying your claim, the information included with the Notice explained how you could dispute denial of your claim. The deadline to dispute the denial of your claim was January 25, 2018.

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21. I received a Disposition Notice that my claim was denied because it was not timely. What can I do?

Nothing. Under the terms of the Settlement approved by the Court, the Administrator’s determination to deny a claim because a Claim form was postmarked or submitted electronically after the July 10, 2017 Claim Submission Deadline is final, binding and not subject to review or appeal. Your claim is ineligible for payment.

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