Jaunich v. State Farm Life Insurance Company

State Farm’s records show that you own or owned a Form 94030 life insurance policy issued by State Farm in Minnesota (or were identified as the legal representative of such an owner) and the policy was in-force on or after January 1, 2002 and was subject to at least one monthly deduction. A Court decided to allow a class action lawsuit to proceed against State Farm related to how it calculates cost of insurance charges deducted from policy owners’ account values. You have legal rights and options that you may exercise before trial. The trial is to decide whether the claims being made against State Farm are correct. The case may settle or be dismissed before a trial or on appeal.

Judge Paul A. Magnuson of the United States District Court for the District of Minnesota is overseeing this case. The case is known as Jaunich v. State Farm Life Insurance Company, Case Number 0:20-cv-01567-PAM-JFD. The person who sued, John E. Jaunich, is called the “Plaintiff.” State Farm is called the “Defendant.”

In a class action lawsuit, one or more people called “Class Representatives” (in this case John E. Jaunich) sue on behalf of other people who have similar claims. Together, those other people are a “Class” or “Class Members.” The Class Representative(s) who sued—and all the Class Members like them—are called the Plaintiffs. The company they sued (in this case State Farm) is called the Defendant. One court resolves the issues for everyone in the Class—except for those people who choose to exclude themselves from the Class.

The Court decided that this lawsuit meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in federal courts. The Court’s decision means the case can proceed as a class action and move toward a trial. Specifically, the Court found that the Class Members are sufficiently numerous, there are questions of law and fact that are common to all Class Members that predominate over questions affecting individual Class Members, the Class Representative’s claims are typical of those of the Class, the Class Representative and Class Counsel are adequate to represent the Class and proceeding as a Class is superior to the alternatives.

More information about the Court’s Memorandum and Order can be found on the Important Documents page.

This lawsuit is about whether State Farm’s cost of insurance charges were consistent with the policy language of the Form 94030 life insurance policy. Form 94030 is a flexible premium adjustable whole life insurance policy that has an “Account Value” that accumulates interest at or above a minimum rate guaranteed under the policy. The policy expressly authorizes State Farm to take a Monthly Deduction from the Account Value of a monthly expense charge, a cost of insurance charge, and the charge for any riders. Plaintiff alleges that State Farm violated the policy in two different ways. Plaintiff alleges that State Farm impermissibly uses factors other than those identified in the Policy when setting Cost of Insurance Rates for each policy year. Second, while the policy permits a separate “Expense Charge” of $5 per month, Plaintiff alleges that State Farm impermissibly exceeds the fixed amount for monthly Expense Charges and includes amounts that should be limited by the Expense Charge in the Cost of Insurance Charge. You can read Plaintiff’s Class Action Complaint (“Complaint”) here.

State Farm denies all of Plaintiff’s claims. State Farm states that the Policy expressly authorizes State Farm to take a Monthly Deduction from the Account Value. The Monthly Deduction includes the Cost of Insurance, the monthly charges for any riders, and a $5.00 monthly Expense Charge. A Monthly Cost of Insurance Rate is used to calculate the Cost of Insurance Charge. Per the Policy, Monthly Cost of Insurance Rates charged to any policyholder are based on the Insured’s age on the policy anniversary, sex, and applicable rate class. A table in the Policy sets forth the maximum Cost of Insurance Rates that State Farm is permitted to charge. State Farm never charged Plaintiff a Cost of Insurance Rate in excess of the maximums allowed under the terms of the Policy. State Farm actually reduced the Cost of Insurance Rates charged to policy owners. Because State Farm charged rates consistent with the terms of the Policy, State Farm did not violate the terms of the Policy or wrongfully take policyholders’ money. You can read Defendant’s Answer to Plaintiff’s Complaint here.

No. The court has not declared a winner. By establishing the Class and issuing this Notice, the Court is not suggesting that the Plaintiffs will win or lose this case.

The Plaintiffs are asking that the Class be compensated for amounts that were included in the Cost of Insurance beyond what they allege the Policy allows. Plaintiffs also seek pre-judgment and post-judgment interest, and such other relief the Court permits.

No money or benefits are available now because the case has not gone to trial yet, and the two sides have not settled the case. There is no guarantee that money or benefits ever will be obtained. If benefits are obtained, and you do not remove yourself from the Class, you will be compensated or be notified about how to claim your share.

Judge Magnuson has certified a Class that includes all persons who own or owned a universal life insurance policy issued by State Farm in Minnesota on Form 94030 whose policy was in-force on or after January 1, 2002 and was subject to at least one monthly deduction, subject to certain important exclusions.

If someone who would otherwise be a Class Member is deceased, his or her legal representatives are Class Members.

The Class excludes: State Farm; any entity in which State Farm has a controlling interest; any of the officers, directors, or employees of State Farm; the legal representatives, heirs, successors, and assigns of State Farm; any State Farm independent contractor insurance agents; anyone employed with Plaintiff’s counsel’s firms; any Judge to whom this case is assigned, and his or her immediate family; and policies that insured males with an age of zero and terminated in the first policy year. If these exclusions apply to you, you are not a member of the Class. If you are not sure whether these exclusions apply to you, you should consult the information on this website.

If you are still not sure whether you are included, you can get free information by calling the toll-free number 855-604-1653 or writing to:

Jaunich v. State Farm Administrator
PO Box 5473
Portland, OR 97228-5473

You don’t have to do anything now if you want to keep the possibility of getting money or benefits from this lawsuit. By doing nothing you are staying in the Class and you will be legally bound by the Orders the Court issues and judgments the Court makes in this class action. If you stay in the Class and the Plaintiffs obtain money or benefits, either as a result of the trial or a settlement, you will either be compensated automatically or be notified about how to apply for a share. Keep in mind that if you do nothing now, regardless of whether the Plaintiffs win or lose the trial, you will not be able to sue State Farm about any legal claim that is or could have been included in this lawsuit.

If you want to bring your own action against State Farm related to the issues presented in this case you should exclude yourself from the Class. Unless you exclude yourself, you give up any right to sue State Farm for the claims that are or could have been asserted in this class action. If you choose to exclude yourself, you will not get any money or benefits from this lawsuit even if the Plaintiffs obtain them as a result of a trial or from any settlement between State Farm and the Plaintiffs. If you start your own lawsuit against State Farm after you exclude yourself, you will have to hire and pay your own lawyer for that lawsuit, and you will have to prove your claims. If you do exclude yourself so you can start your own lawsuit against State Farm, you should talk to your own lawyer soon, because your claims may be subject to a statute of limitations.

To ask to be excluded, also sometimes referred to as “opting out” of the Class, you must send an “Exclusion Request” in the form of a letter by U.S. Mail, stating that you want to be excluded from Jaunich v. State Farm Life Insurance Company. Be sure to include your name, policy number, and address, and sign the letter. A form for your use will be included in the notice sent to you. The Exclusion Request must be postmarked by February 11, 2022 to:

Class Action Opt Out
Attn: Jaunich v. State Farm
PO Box 5473
Portland, OR 97228-5473

Yes. The Court appointed the following lawyers as “Class Counsel” to represent all the members of the Class:

If you have questions, you may contact these lawyers. You will not be charged for contacting these lawyers. If you want to be represented by your own lawyer, however, you may hire one at your own expense.

You do not need to hire your own lawyer because Class Counsel are working on your behalf. But, if you want your own lawyer, you will have to pay that lawyer. You can ask him or her to appear in Court for you in this case if you want someone other than Class Counsel to speak for you.

Class Counsel have not been paid or reimbursed for their time and expenses incurred in pursuing this case. You will not have to pay these fees and expenses. If Class Counsel obtain money or benefits for the Class, they may ask the Court for fees and expenses. The motion seeking fees and expenses will be available in the Important Documents section of this website. If the Court grants Class Counsel’s request, the fees and expenses would be either deducted from any money obtained for the Class or paid separately by State Farm.

Unless the case is resolved by a settlement or otherwise, Class Counsel will have to prove the Plaintiffs’ claims at a trial. The trial date is set for August 1, 2022 and will take place in the United States District Court for the District of Minnesota, 316 N. Robert Street, Courtroom 7D, St. Paul, Minnesota 55101. During the trial, a Jury or the Judge will hear all of the evidence to help them reach a decision about whether the Plaintiffs or Defendant are right about the claims in the lawsuit. Once set, the trial date will be posted on this website.

You do not need to attend the trial. Class Counsel will present the case for the Plaintiffs, and State Farm will present the defenses. You or your own lawyer may attend the trial at your own expense.

On this website, you will find the Court’s Order certifying the class, the Complaint that the Plaintiffs submitted, the Defendant’s Answer to the Complaint, as well as an Exclusion Request Form in the Important Documents section, or call 855-604-1653. As the lawsuit proceeds, be sure to check the website regularly for updates and new information.

Please do not contact the Court or State Farm with questions about the Class Action Lawsuit.