Why did I get this notice?
You received this notice because Centennial’s records indicate that you may be a member of the Settlement Class defined below, that were charged by Centennial or its affiliates, and not fully refunded, for hazard, windstorm, and/or flood insurance policy force-placed on real property located in the United States and its territories. The Court authorized this notice because you have a right to know about your rights under a proposed class action settlement before the Court decides whether to approve the Settlement. If the Court approves the Settlement, and after objections and appeals are resolved, a Settlement Administrator appointed by the Court will make the cash payments that the Settlement allows.
This package explains the lawsuits, the Settlement, your rights, what benefits are available, who is eligible for them, and how to get them.
The Court in charge of the litigation is the United States District Court for the Northern District of Florida, and is one case at issue — Penton v. Centennial Bank et al, Case No. 4:18-cv-00450-AW-MAF (N.D. Fl.) The individuals who sued are called “Plaintiffs,” and the company they sued, Centennial Bank, is the “Defendant.”
What is this lawsuit about?
The lawsuit, Penton v. Centennial Bank et al, Case No. 4:18-cv-00450-AW-MAF (N.D. Fl.) are related to charges for force-placed insurance on real property located in the United States and its territories. These claims include breach of contract and breach of covenant of good faith and fair dealing. Centennial denies these allegations, any wrongdoing, and that it is liable in any amount to the affected individuals. The Plaintiffs seek to recover damages incurred by as a result of these charges. Centennial denies the allegations and any wrongdoing, and that it is liable in any amount to the affected individuals. The Court has not decided whether Centennial has any legal liability.
Why is this a class action?
In a class action, one or more persons called “Named Plaintiffs” sue on behalf of themselves and other persons with similar claims. All of these entities together are the “class” or “class members.” One court resolves the issues for all class members, except for those who exclude themselves from the Settlement Class.
Why is there a settlement?
The Court has not decided in favor of Plaintiffs or Centennial. Instead, both sides agreed to the Settlement. The Settlement is not an admission that Centennial did something wrong, but rather a compromise to end the lawsuit. By agreeing to settle, both sides avoid the costs, risks, and uncertainties of a trial and related appeals, while providing benefits to members of the Settlement Class. The Named Plaintiff and Class Counsel think the Settlement is best for all class members.
WHO IS PART OF THE SETTLEMENT
How do I know if I am part of the settlement?
The Settlement Class includes borrowers who, during the period October 1, 2013 through December 31, 2019 (the “Class Period”), were charged by Centennial or its affiliates, and not fully refunded, for hazard, windstorm, and/or flood insurance policy force-placed on real property located in the United States and its territories. The Settlement Class also includes borrowers that were charged between October 1, 2012 and September 30, 2013 for force-placed insurance on real property located in Alabama. The term “Class Period” is similarly construed to include this additional time period with respect to Alabama properties. For the purpose of this settlement, mobile homes are real property when insured under a real-property master insurance policy, meaning that the mobile home was permanently affixed to the land.
Specifically excluded from the Settlement Class are:
- Defendants, their affiliates, subsidiaries, agents, board members, directors, officers, and/or employees;
- the Court, any justice, judge, or magistrate judge of the United States or any State, their spouses, and any immediate family members of the Court;
- borrowers that have a pending case arising under Title 11 of the United States Code or that received a final judgment of discharge, or confirmed plan after the date FPI was last placed, in any case arising under Title 11;
- borrowers that either (a) settled or released all claims after the date FPI was last placed, or (b) are subject to a final money or foreclosure judgment, with respect to each FPI loan on which they were borrowers; and,
- all borrowers who file a timely and proper request to be excluded from the Class.
Are there exceptions to being included?
If you exclude yourself from the Settlement, you are no longer part of the Settlement Class and will no longer be eligible to receive any of the Settlement benefits. This process of excluding yourself is also referred to as “opting out” of the Settlement.
I am still not sure if I am included.
If you are still not sure whether you are included, you can ask for free help or you can fill out and return the Claim Form to see if you qualify.
THE SETTLEMENT BENEFITS
What does the settlement provide?
Under the Settlement, Centennial has agreed to pay up to $730,000 (the “Maximum Payment”) in Settlement Class Relief that will be used to pay all distributions Settlement Class Members who submit timely, valid, and verified Claim Forms (“Qualified Claims”). In addition to this amount, Centennial has agreed to pay Court-approved reasonable Plaintiffs’ Attorneys’ Fees and Expenses, and Settlement Administrator’s costs and expenses.
If the total value of the Qualified Claims, as determined by the Settlement Administrator, submitted during the Claims Period is less than $250,000 (the “Minimum Payment”), any amount below the Minimum Payment will be applied in the following order: (1) the notice and administration costs (up to total amount of such costs); (2) the reimbursement of expenses to Class Counsel; and (3) the award of attorneys’ fees and costs to Settlement Class Co-Counsel.
How much will my payment be?
For those Borrowers who submit a timely, valid, and verified Claim Form, Centennial shall pay to each such Settlement Class Member via check or electronic transfer an amount equal to 9% of the Net Premium charged to the Settlement Class Member during the Class Period for each FPI Loan identified on the Claimant’s Claim Form. In the event that the compensable amount of all Qualified Claims exceeds the Maximum Payment, each class member’s payment shall be reduced pro rata so that the Claim payments do not exceed the Maximum Payment.
“Net Premium” means the amount of premium charged to a Settlement Class Member for an FPI Policy during the Class Period less any refund paid or credited to the Settlement Class Member.
HOW TO GET A PAYMENT—SUBMITTING A CLAIM FORM
What does the settlement provide?
Under the Settlement, Centennial has agreed to pay up to $730,000 (the “Maximum Payment”) in Settlement Class Relief that will be used to pay all distributions Settlement Class Members who submit timely, valid, and verified Claim Forms (“Qualified Claims”). In addition to this amount, Centennial has agreed to pay Court-approved reasonable Plaintiffs’ Attorneys’ Fees and Expenses, and Settlement Administrator’s costs and expenses.
If the total value of the Qualified Claims, as determined by the Settlement Administrator, submitted during the Claims Period is less than $250,000 (the “Minimum Payment”), any amount below the Minimum Payment will be applied in the following order: (1) the notice and administration costs (up to total amount of such costs); (2) the reimbursement of expenses to Class Counsel; and (3) the award of attorneys’ fees and costs to Settlement Class Co-Counsel.
How much will my payment be?
For those Borrowers who submit a timely, valid, and verified Claim Form, Centennial shall pay to each such Settlement Class Member via check or electronic transfer an amount equal to 9% of the Net Premium charged to the Settlement Class Member during the Class Period for each FPI Loan identified on the Claimant’s Claim Form. In the event that the compensable amount of all Qualified Claims exceeds the Maximum Payment, each class member’s payment shall be reduced pro rata so that the Claim payments do not exceed the Maximum Payment.
“Net Premium” means the amount of premium charged to a Settlement Class Member for an FPI Policy during the Class Period less any refund paid or credited to the Settlement Class Member.