State Farm Agrees To Settle Class-Action Suit

State Farm Life Insurance Company and State Farm Life and Accident Assurance Company have agreed to settle a class action lawsuit alleging misleading sales practices of traditional whole life and universal life insurance policies sold in the United States dating back to 1982. Settlement benefits estimated to be $200 million will be available to State Farm life insurance customers who are class members.

"Without admitting any of the allegations, we've agreed to settle this lawsuit," said Roger Tompkins, executive vice president-Life. "As we looked at this situation, we determined early on that the interests of our customers would be served best by resolving these issues, rather than engaging in expensive and lengthy litigation. In this way, all customers would be provided a fair process to obtain relief without a costly and time consuming trial. The money that would otherwise go toward the expenses of trial preparation and legal fees could instead be made available for the relief of our customers. We believe it's in everyone's best interest to settle this case, put it behind us and get on with the business of serving our customers' present and future life insurance needs."

"This settlement is an attempt to resolve any past misunderstandings or current problems," he continued. "It is also an effort to preserve and strengthen the relationships between our customers, our agents and the Company."