When a vehicle is stolen or totaled in an accident, what costs must the insurance company pay? The complaint for this class action brings suit against 21st Century Centennial Insurance Company, alleging that omits to pay the sales tax on the amount of its payout for a new vehicle.
The plaintiff in this case, Jamila Reeves, owned a 2007 Chevrolet Impala that she insured with 21st Century Centennial. In July 2014, the vehicle was lost or damaged, and Reeves made a claim to the insurance company.
The company’s valuation report was prepared by a third party, CCC, which the complaint says “bases vehicle valuations on the cost to purchase similar vehicles with similar conditions and mileage.” The Valuation shows a base vehicle value of $7,600 and an adjusted vehicle value of $7,248.
According to the complaint, 21st Century Centennial took the adjusted vehicle value amount of $7,248, added $10.50 for fees, then subtracted the $1,000 deductible, arriving at a payout of $6,258.50. The complaint alleges, “By failing to include sales tax in making payment for the loss, 21st Century breached its contract with [Reeves].”
The complaint alleges that the vehicle’s policy requires the payment of sales tax. It quotes the policy as saying, “If we pay for loss in money, our payment will include, where required by law, the applicable sales tax for the damaged or stolen property.”
The complaint adds, “Nothing in the Policy unambiguously excludes sales tax or contradicts [21st Century Centennial’s] promise to pay sales tax where it pays for the loss in money. To the extent the applicable limitation on liability is the vehicle’s actual cash value, such limitation does not operate to exclude or subvert [21st Century Centennial’s] explicit and unambiguous promise to include payment for sales tax in its loss payments.”
The counts include breach of contract and declaratory relief, asking the court to decide whether or not Reeves (and the other members of the class) are entitled to the payment of sales tax as part of their insurance payout.
The class for this action is all Missouri insureds under a policy issued by 21st Century Centennial covering a vehicle with private-passenger auto physical damage coverage for comprehensive or collision loss who, between the applicable statute of limitations before the filing of this case on March 7, 2022 and the date the class is certified, submitted a first-party property damage claim that 21st Century Centennial determined to constitute a covered loss claim, and where the loss claim payment did not include sales tax.
Article Type: LawsuitTopic: Insurance
Most Recent Case Event
21st Century Centennial Sales Tax on Vehicle Payouts Missouri Complaint
March 7, 2022
When a vehicle is stolen or totaled in an accident, what costs must the insurance company pay? The complaint for this class action brings suit against 21st Century Centennial Insurance Company, alleging that omits to pay the sales tax on the amount of its payout for a new vehicle.
21st Century Centennial Sales Tax on Vehicle Payouts Missouri ComplaintCase Event History
21st Century Centennial Sales Tax on Vehicle Payouts Missouri Complaint
March 7, 2022
When a vehicle is stolen or totaled in an accident, what costs must the insurance company pay? The complaint for this class action brings suit against 21st Century Centennial Insurance Company, alleging that omits to pay the sales tax on the amount of its payout for a new vehicle.
21st Century Centennial Sales Tax on Vehicle Payouts Missouri Complaint