American Family Insurance Faces $1B In Legal Liability

American Family Insurance could have to pay legal liability as high as $1 billion depending on a federal judge’s decision. Last week, a jury decided that thousands of the insurer’s independent agents are entitled to full employee retirement package benefits. If the judge adopts that ruling, the company, also known as AmFam would be required to comply. The jury’s ruling was made after a two week trial held at an Ohio U.S. District Court. The jury’s decision was unanimous and stated that American Family Insurance procedures are not appropriate or fair. The insurance company had been classifying its agents as independent contractors.