Hartford Settles Class Action Over UIM Coverage Miscommunication

Hartford Property and Casualty Insurance Co. and Hartford Insurance Co. of the Midwest have agreed to settle a class action lawsuit regarding underinsured motorist (UIM) coverage in New Mexico. The settlement addresses allegations of misleading UIM coverage descriptions and the improper application of offsets. This involves policies issued from December 29, 2014, to March 18, 2022, for Hartford Property and Casualty, and from January 1, 2019, to March 18, 2022, for Hartford Insurance Co. of the Midwest.

Plaintiffs argued that Hartford insufficiently communicated to policyholders that UIM coverage would incur offsets from the at-fault driver's liability insurance. Hartford, denying any wrongdoing, has consented to settle the claims. The settlement offers class members either additional UIM benefits or a refund of 23% of premiums paid for UIM bodily injury coverage, emphasizing customer choice in addressing prior authorization delays.

For wrongful death claims, automatic payments will be facilitated. Policyholders opting for premium refunds will receive a 23% return on their UIM premiums. Alternatively, claimants can pursue a reevaluation of their UIM claims without offsets, potentially altering compensation outcomes. Critical deadlines include February 21, 2026, for exclusions and objections, with the final approval hearing on March 23, 2026. Claim forms are due by May 22, 2026, with policy or claim numbers required for reevaluation.

The lawsuit, titled Soleil, et al. v. Property and Casualty Insurance Company of Hartford, et al., in the New Mexico District Court, underscores the importance of transparency in insurance policy disclosures. Industry participants must stay informed on coverage descriptions and claims procedures to maintain compliance and address regulatory compliance requirements in a dynamic legal environment.