Nationwide Mutual Settlement Could Benefit 305,000 North Carolinians

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July 27, 2009 Monday 04:51 PM EST

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Nationwide Mutual Settlement Could Benefit 305,000 North Carolinians

Chad Hemenway

RALEIGH, N.C.

The settlement of a class-action lawsuit against Nationwide Mutual Insurance Co. could mean nearly 305,000 policyholders in North Carolina qualify for a payout.

The lawsuit, known as Alexander vs. Nationwide Mutual Insurance Co., claimed Nationwide improperly withheld payments of general contractors' overhead and profit from amounts paid on claims for structural losses under homeowners policies. Nationwide said it properly resolved all the claims but settled in order to avoid more costs related to the litigation. Circuit Court Judge Kirk D. Johnson in Arkansas is overseeing this class action.

Homeowners who submitted a claim from 1996 through March 20 of this year, or those that have received a payment from Nationwide during that time, may be affected. Those who could be eligible under the class-action settlement should be receiving a notice by mail.

The Oregon Department of Consumer and Business Services said more than 9,000 state residents could be eligible for payments as part of the settlement made with Nationwide Mutual (BestWire, July 8, 2009).

The Nationwide companies involved in this recent settlement include: Nationwide Mutual Insurance Co., Nationwide Mutual Fire Insurance Co., Amco Insurance Co., Allied Property and Casualty Insurance Co., Depositors Insurance Co., National Casualty Co., Nationwide Insurance Company of America, Nationwide Affinity Insurance Company of America, Nationwide Property and Casualty Insurance Co., Nationwide Lloyds, Nationwide Insurance Company of Florida, Nationwide Indemnity Co., Scottsdale Indemnity Co., Scottsdale Surplus Lines Insurance Co., and Scottsdale Insurance Co.

Nationwide Group currently has a Best's Financial Strength Rating of A+ (Superior).

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)

July 29, 2009