Loya Insurance agreed to pay $1.95 million to resolve claims it misrepresented the value of underinsured motorist coverage and applied an offset to claims.

The Young America Insurance settlement benefits Young America Insurance Co. (YAIC) and Loya Insurance Co. policyholders who resided in New Mexico and purchased UM/UIM coverage between Oct. 1, 2010, and Feb. 28, 2022, including those who later filed underinsured motorist claims and had benefits reduced or denied due to undisclosed third-party insurance offsets.

Loya Insurance is an insurance company that offers various insurance products, including auto insurance. Young America Insurance is a Loya Insurance affiliate.

According to two class action lawsuits, Loya Insurance misrepresented the value of its underinsured motorist coverage and applied an illegal offset when paying claims.

The offset allegedly reduced UIM benefits based on the insurance coverage limits of third parties responsible for bodily injuries or property damage. Plaintiffs in the class action lawsuits say this practice violates New Mexico law.

Loya Insurance has not admitted any wrongdoing but agreed to a $1.95 million class action settlement to resolve the allegations.

Under the terms of the underinsured motorist insurance settlement, eligible class members may receive a readjustment of their bodily injury and/or property damage UIM claims. The total amount available for all approved UIM claim readjustments is capped at $800,000. Class members who wish to receive a claim readjustment must submit a valid claim form.

Class members who do not wish to receive a claim readjustment can receive a refund of a portion of the uninsured/underinsured motorist premiums they paid between Oct. 1, 2010, and Feb. 28, 2022. These refunds will be based on the amount of UM/UIM premiums paid by each class member.

The deadline for exclusion and objection is Jan. 26, 2026.

The final approval hearing for the Young America Insurance settlement is scheduled for March 24, 2026.

To receive settlement benefits, class members must submit a valid claim form by March 12, 2026.