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JMIC Life Insurance faces class action suit

November 17, 2010
The CATA has been made aware of a class action lawsuit filed against JMIC Life Insurance Co., alleging that JMIC failed to return unearned premiums to consumers who purchased credit life and disability insurance and paid off their vehicle loans before the policies expired.



A second issue in the litigation is whether consumers were obligated to notify JMIC and request a refund, or whether the burden to notify rests solely on the insurance company.   

The litigation has been certified as a nationwide class action.  JMIC has been ordered by the Superior Court of Muscogee County in Georgia to prepare and send a letter to its dealers with updated information regarding former sales of credit life and disability policies.


While the CATA is not aware that any Illinois dealers have received the court ordered letter from JMIC Life Insurance Co., dealers are recommended to consult with their legal counsel in deciding whether to respond. 

Because the request for information is extensive, dealers have raised customer privacy issues, and it is unclear what authority the Georgia court has to request such information from dealers who are not parties to the litigation.


Notwithstanding the above, the court-ordered letter threatens dealers with subpoenas for failure to comply.