Class Action Accuses Erie Insurance of Overcharging Auto Policyholders During Pandemic
September 28, 2020
DOCUMENTS
- Notice of Removal
CHICAGO — A putative class action accuses Erie Insurance Exchange of charging “grossly excessive” auto insurance premiums during the COVID-19 pandemic, when traffic, auto accidents and resulting claims decreased as Illinois residents drove less frequently and for shorter distances.
In a complaint removed to the U.S. District Court for the Northern District of Illinois on Sept. 16, EBCF Enterprises Inc. alleges Erie “recognized a windfall in premiums,” yet gave its policyholders a woefully inadequate refund of only 5 percent of annual premium.
That refund “compared unfavorably” to the relief offered by other Illinois auto insurers and “falls short of …
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