Young America Insurance $1.95M Class Action Settlement, New Mexico UIM Coverage Claim Deadline March 12, 2026
Young America Insurance Co. and Loya Insurance Co. agreed to pay $1.95 million to settle allegations they violated New Mexico law by failing to properly disclose limitations of uninsured/underinsured motorist (UM/UIM) coverage and applying improper offsets to claims. If you had UM/UIM coverage in New Mexico between October 2010 and February 2022, you may qualify for automatic premium refunds or additional compensation by filing a claim before March 12, 2026.
What Is the Young America Insurance Settlement About?
Young America Insurance Company and Loya Insurance Company face allegations they violated New Mexico Supreme Court requirements by selling UM/UIM auto insurance policies without proper disclosures and by applying unauthorized offsets—reductions in benefits based on the at-fault driver’s insurance limits.
The class action lawsuit claims these practices violated New Mexico law established in Crutcher v. Liberty Mutual Insurance Co., which requires specific language in UM/UIM policies. When insurers failed to include required disclosures or exclusions, they allegedly reduced or denied benefits to policyholders unfairly.
Both companies deny wrongdoing but agreed to settle to avoid continued litigation.
Who Is Eligible for Automatic Premium Refunds
Two groups qualify for this settlement, with different compensation structures:
UM/UIM Premium Refund Class (Automatic Payment): You automatically qualify if you were a policyholder of Young America Insurance Co. or Loya Insurance Co. who:
- Lived in New Mexico
- Had an auto insurance policy between October 1, 2010, and February 28, 2022
- Purchased or paid premiums for UM/UIM coverage
You do not need to file a claim to receive the premium refund—it will be distributed automatically to all eligible class members.
UIM Claim Readjustment Class (Must File Claim): You must file a claim by March 12, 2026, if you:
- Submitted a claim for UIM benefits after October 1, 2010
- Had a policy that included UM/UIM coverage
- Did not have the disclosure or exclusion required by Crutcher v. Liberty Mutual Insurance Co.
- Had your UIM benefits reduced or denied due to an offset for the at-fault third party’s insurance limits
Similar issues have affected policyholders across the country. For example, Progressive Class Action Lawsuits, $159 Million In Settlements, Eligibility, Deadlines And How To File Claims covers multiple insurance settlements involving undervalued claims.
What Young America Insurance Allegedly Did Wrong
The lawsuit centers on two alleged violations of New Mexico insurance law:
Improper Disclosure of UM/UIM Limitations: New Mexico law, as established by the state Supreme Court in Crutcher, requires insurers to clearly disclose how UM/UIM coverage works and what limitations apply. The lawsuit alleges Young America and Loya sold policies without including required disclosures, leaving policyholders unaware of coverage restrictions.
Unauthorized Offsets: When a claimant receives UIM benefits after an accident with an at-fault driver, insurers sometimes reduce the payout by the amount the at-fault driver’s insurance already paid. This is called an offset.
New Mexico law prohibits these offsets unless specific policy language and disclosures are included. The lawsuit alleges Young America and Loya applied offsets without the required policy language, resulting in reduced or denied benefits.
For policyholders who submitted UIM claims, these practices allegedly meant receiving less compensation than they deserved for injuries and damages after accidents with underinsured drivers.
How Much Money Can You Receive
The total settlement fund is $1.95 million, distributed between two groups:
Premium Refund Payments (Automatic): All eligible policyholders will receive a refund of a portion of premiums paid for UM/UIM coverage during the covered period. The exact amount depends on how many policyholders qualify and how much each paid in premiums.
Based on similar settlements, individual premium refunds typically range from $10 to $100, though amounts vary significantly based on participation.
UIM Claim Readjustment Payments (Requires Claim Form): If your UIM claim was reduced or denied due to improper offsets, you may receive additional compensation beyond the premium refund. The amount depends on:
- The original claim amount
- How much was reduced due to offsets
- Supporting documentation you provide
Settlement terms don’t specify exact amounts, but claimants who provide strong documentation of their original claims and the offsets applied may receive hundreds or thousands of dollars.
Critical Deadlines You Must Know
Claim Filing Deadline: March 12, 2026 If you had a UIM claim reduced or denied, you must submit your claim form online or postmarked by March 12, 2026. Missing this deadline means forfeiting any additional compensation.
Opt-Out Deadline: January 26, 2026 If you want to preserve your right to sue Young America or Loya independently, you must opt out by January 26, 2026. Most class members should not opt out—doing so excludes you from receiving settlement money.
Final Approval Hearing: The court will hold a hearing to grant final approval of the settlement. The specific date hasn’t been publicly announced as of January 2026, but it will occur after the January 26 opt-out deadline.
How to File a UIM Claim Readjustment Claim
If your UIM benefits were reduced or denied due to offsets, follow these steps:
1. Visit the Official Settlement Website: Go to the settlement administrator’s website https://loyauimsettlement.com or here is Claim Form: https://loyauimsettlement.com/Content/Documents/AM087_web.pdf
2. Gather Required Information: You’ll need:
- Your unique ID and PIN from the settlement notice
- Policy information (policy number, dates of coverage)
- Details about your UIM claim (date, claim number, amount)
- Documentation showing the offset applied
3. Collect Supporting Documentation: To maximize your claim, gather:
- Medical records related to the accident
- Itemized medical bills
- Original UIM claim correspondence
- Letters showing benefit reductions or denials
- Record release authorization
4. Complete the Online Claim Form: Enter your information and upload documentation. The form will guide you through required fields.
5. Submit Before March 12, 2026: Ensure your claim is submitted online or postmarked by the deadline. Late claims will not be accepted.
If you lost your settlement notice or didn’t receive one, contact the settlement administrator using information that will be provided in official communications.
Understanding UM/UIM Coverage
Many people don’t fully understand what UM/UIM coverage protects:
Uninsured Motorist (UM) Coverage: Pays for your injuries and damages when you’re hit by a driver with no insurance.
Underinsured Motorist (UIM) Coverage: Pays the difference when the at-fault driver’s insurance isn’t enough to cover your full damages. For example, if you have $100,000 in damages but the at-fault driver only has $25,000 in coverage, your UIM coverage should pay the remaining $75,000 (up to your policy limits).
Why Offsets Matter: When insurers apply offsets, they subtract the at-fault driver’s payment from your UIM benefits. Without proper policy disclosures, this practice violates New Mexico law and reduces the protection you paid for.
What Happens After You File
Claim Review: The settlement administrator will review your claim and verify eligibility. They’ll confirm you had UIM coverage, submitted a claim, and had benefits reduced due to offsets.
Documentation Verification: If you provided supporting documentation, the administrator will verify the amounts and ensure your claim matches policy records.
Approval or Denial: You’ll receive notification whether your claim was approved. If denied, the administrator must explain why.
Payment Distribution: After the court grants final approval and the claim deadline passes, payments will be distributed. Based on typical timelines, expect payments 3-6 months after March 12, 2026—likely in summer or fall 2026.
Payments will be issued via check mailed to your address on file.
Common Misconceptions About This Settlement
Misconception: Only people who filed UIM claims can receive money. Reality: All New Mexico policyholders who paid for UM/UIM coverage during the covered period will receive automatic premium refunds, even if they never filed claims.
Misconception: The settlement admits Young America and Loya broke the law. Reality: Both companies deny wrongdoing. Settlements resolve disputes without determining liability.
Misconception: You need a lawyer to file a claim. Reality: The claim process is designed for individuals to complete on their own. However, if your UIM claim was substantial or you need help calculating damages, consulting an attorney may be beneficial.
Misconception: Missing the deadline means you can sue separately. Reality: Only if you opt out by January 26, 2026, can you sue independently. Simply missing the claim deadline forfeits your right to settlement compensation.
Broader Implications for New Mexico Drivers
This settlement highlights ongoing issues in the insurance industry around disclosure requirements and claims handling.
State Law Enforcement: New Mexico’s strict requirements for UM/UIM policy disclosures reflect strong consumer protection standards. This settlement reinforces that insurers must comply with Crutcher requirements.
Similar Cases: Other states have seen similar lawsuits over improper offsets and disclosure failures. Insurance companies across the country face scrutiny over claims practices.
Consumer Awareness: Many policyholders don’t understand their UM/UIM coverage or realize when insurers improperly reduce benefits. Reviewing your policy and understanding coverage limits can protect your rights.
For broader context on insurance settlement trends, see Claim Your Sutter Health Settlement Money $228.5M Available For Northern California Residents, which addresses similar consumer protection issues.
What If Your Claim Is Denied
If the settlement administrator denies your UIM claim readjustment, you’ll receive an explanation. Common denial reasons include:
- Your policy included the proper Crutcher disclosures or exclusions
- No offset was applied to your claim
- You didn’t submit a UIM claim during the covered period
- Incomplete documentation or missing information
- Claim filed after the March 12, 2026 deadline
If you believe your claim was wrongly denied, contact the settlement administrator immediately with additional documentation supporting your eligibility.
Frequently Asked Questions
What is the Young America Insurance $1.95M Class Action Settlement?
Young America Insurance and Loya Insurance agreed to pay $1.95 million to settle allegations they violated New Mexico law by failing to properly disclose UM/UIM coverage limitations and applying improper offsets that reduced or denied benefits to policyholders between 2010 and 2022.
Am I eligible for the premium refund?
You’re automatically eligible if you had a Young America or Loya auto insurance policy in New Mexico between October 1, 2010, and February 28, 2022, that included UM/UIM coverage. No claim form is required for the premium refund.
Do I need to file a claim?
Only if you want additional compensation for a UIM claim that was reduced or denied due to offsets. Premium refunds are automatic, but UIM claim readjustments require filing by March 12, 2026.
What is the deadline to file a UIM claim readjustment claim?
The deadline is March 12, 2026. Claims submitted after this date will not be accepted.
How much money can I receive?
Premium refunds vary based on the number of class members and premiums paid, typically ranging from $10-$100. UIM claim readjustments depend on your original claim amount and documentation, potentially worth hundreds or thousands of dollars.
What documentation do I need to file a UIM claim readjustment?
You need your unique ID and PIN from the settlement notice, policy information, UIM claim details, medical records, itemized bills, original claim correspondence, and a record release authorization.
When will I receive payment?
Payments will be distributed after final court approval and claim processing, likely 3-6 months after the March 12, 2026 deadline—expect summer or fall 2026.
Last Updated: January 18, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
What to Do Next: New Mexico policyholders will receive automatic premium refunds. If your UIM claim was reduced due to offsets, file your claim by March 12, 2026.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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