Progressive 2014 Annual Report Download - page 41

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Cases settled during 2014 include:
• One putative class action lawsuit alleging that Progressive steers customers to Service Centers and network shops
to have their vehicles repaired. This matter was settled on an individual basis.
• One putative class action lawsuit alleging that Progressive negligently designed, manufactured, and deceptively
advertised Snapshot®in that it purportedly drains a vehicle’s battery to the point that the battery is non-functional
or diminished in value. This matter was settled on an individual basis.
• One putative class action lawsuit alleging that Progressive violated the Telephone Consumer Protection Act in
making cell phone calls to insureds. This matter was settled on an individual basis.
Cases settled during 2013 include:
• One putative class action lawsuit alleging that Progressive did not reimburse any of its insureds who incurred legal
fees to recover money from another Progressive insured. This case was accrued for, settled, and paid in 2013.
• One putative class action lawsuit alleging that Progressive improperly applies a preferred provider discount to
medical payment claims. This case was accrued for and settled in 2013.
• One putative class action lawsuit challenging the manner in which Progressive charges premium and assesses
total loss claims for commercial vehicle stated amount policies. This case was accrued for, settled, and paid in
2013.
• Two putative class action lawsuits challenging Progressive’s practice in Florida of adjusting PIP and first-party
medical payments. Both cases were settled on an individual basis.
Cases settled during 2012 include:
• One putative class action lawsuit that challenged Progressive’s use of certain automated database vendors or
software to assist in the adjustment of bodily injury claims where the plaintiffs alleged that these databases or
software systematically undervalued the claims; an accrual was established during 2012, and the case was paid in
2013.
13. COMMITMENTS AND CONTINGENCIES
We have certain noncancelable operating lease commitments with lease terms greater than one year for property and
computer equipment. The minimum commitments under these agreements at December 31, 2014, were as follows:
(millions) Commitments
2015 $ 46.2
2016 43.7
2017 37.2
2018 27.1
2019 16.4
Thereafter 4.4
Total $175.0
Some of the leases have options to renew at the end of the lease periods. The expense we incurred for the leases
disclosed above, as well as other operating leases that may be cancelable or have terms less than one year, was:
(millions) Expense
2014 $63.4
2013 64.6
2012 71.9
We also have certain noncancelable purchase obligations. The minimum commitment under these agreements at
December 31, 2014, was $493.5 million.
As of December 31, 2014, we had no open investment funding commitments; we had no uncollateralized lines or letters of
credit as of December 31, 2014 or 2013.
App.-A-40