Settlement Pending in Nationwide Insurance Class Action

As many as 305,000 customers who purchased insurance from Nationwide Mutual Insurance may qualify as plaintiffs in a class action lawsuit brought against the company.

Claims must be submitted by August 26, 2009, in order to be considered for a portion of the settlement monies, the amount of which has not been disclosed. Potentially eligible customers should have been contacted by mail.

The suit alleges that Nationwide and its affiliated companies underpaid policyholders by not including overhead and profit costs for general contractors when the insurance company paid out on certain claims on damage to buildings and other structures. This was allegedly the practice from 1996 to March 20, 2009.

JULY-28-09: Nationwide Mutual Insurance settlement may affect 305,000 North Carolinians [MSN MONEY: NATIONWIDE MUTUAL INSURANCE]