A Federal Judge In Miami Has Granted Class-action Status In A Lawsuit Accusing A Subsidiary Of American Family Insurance Of Improperly Collecting Cancellation Fees

This Class Includes All Florida Residents Who Purchased Non-standard Auto Coverage From Permanent General Assurance Corporation (Pgac) From 2015 To 2020.

The Plaintiff Alleges That Pgac Deducted "Short Rate Cancellation Premium" From The Unearned Premium, Which Was To Be Refunded On Cancellation Of The Policy By The Subscriber.

Dimitrouleas Said In Its Order That Non-standard Auto Insurance Sold By Pgac And Others "Is Typically Purchased By Customers Who

Are Unable To Afford Coverage Through The Standard Carrier Due To Financial Constraints Or Otherwise." It Is Common For This Type Of Policy To Be Canceled, He Added.

"As Such, Plaintiffs Claim That It Is Important That Consumers Are Given Clear, Advance Notice Of The Potential Or Existence Of Any Charges Or Penalties That

The Plaintiffs Stated That They Expect To Receive Back 90% Of Their Unearned Premiums Upon Cancellation Based On The Following Language In Their Policies:

Doreen L. Connor Renewed His Non-standard Automobile Insurance Policy For One Year On September 24, 2019, Making All His Monthly $259 Premium Payments On Time.

On May 26, 2020, He Opted To Cancel The Policy. According To Connor, Pgac Still Had $240 Worth Of Unearned Premiums At The Time.

Expecting A 90% Refund, Or $216, He Only Got $153 In Return. Pgac Assessed 10% Of Future Unearned Premiums Never Paid By Connor, And Never Retained By The Insurer.