Overview

The lawsuits claim that Defendants’ Kentucky policyholders paid local government premium taxes and collection fees in connection with their auto insurance policy premiums. These taxes and fees were either not owed or were charged at rates higher than legally required. The lawsuit seeks refunds of these amounts paid during certain time periods. Defendants deny they did anything wrong.  

Local government premium taxes are taxes charged by Kentucky local governments that are calculated and collected by Defendants and then paid to Kentucky local governments. Collection fees are fees calculated and collected by Defendants for collecting local government premium taxes.

The Court did not decide in favor of Plaintiffs or Defendants. Instead, both sides agreed to a settlement. By agreeing to settle, both sides avoid the cost and uncertainty of a trial, and the people affected will get a chance to receive compensation. The Class Representatives and their attorneys think the settlement is best for all Class members. If the Court approves the settlement, then Defendants will no longer be legally responsible for the claims made in these lawsuits.

You are a Class member if you were a policyholder with:

  • American International South Insurance Company from June 22, 2001 to December 1, 2009, or
  • Granite State Insurance Company from July 1, 2003 to December 1, 2009, or
  • Illinois National Insurance Company from July 1, 2003 to December 1, 2009.
In order to be a Class member, you also must have paid Kentucky local government premium taxes and collection fees on your insurance policy premiums that were either not owed or were charged at a rate higher than legally required.

Defendants have conducted an extensive review, and Class Counsel has verified generally the accuracy of the review, of its policyholder records to determine which policyholders may have been overcharged on Kentucky local government premium taxes and collection fees. This notice is being sent to those policyholders who were identified as probably having overpaid.