IN THE SUPERIOR COURT OF THE STATE OF ARIZONA IN AND FOR THE COUNTY OF MOHAVE Hernandez v. Allstate Vehicle and Property Ins. Co., No. CV-2026 00048 NOTICE OF CLASS ACTION SETTLEMENT A court authorized this notice. This is not an advertisement or a solicitation. PLEASE READ THIS NOTICE IN ITS ENTIRETY If your Arizona structure was insured by Allstate Vehicle and Property Insurance Company, Allstate Insurance Company, Esurance Property and Casualty Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, Encompass Insurance Company of America, Encompass Property and Casualty Company, Encompass Indemnity Company, or North Light Specialty Insurance Company (collectively, “Allstate”) and you made a claim to Allstate for structural damage to your property and you received payment from Allstate between April 25, 2017, through October 1, 2026, this class action settlement may affect your rights. A Proposed Settlement has been reached in a class action about whether Allstate properly deducted Nonmaterial Depreciation when adjusting certain property insurance claims in Arizona. You may qualify for payment if you timely submit a valid Claim Form. Your legal rights are affected whether you act, or do not act. Please read this notice carefully. YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT: SUBMIT A CLAIM FORM The only way to get a payment if you qualify. ASK TO BE EXCLUDED You get no payment. This is the only option that allows you to ever be part of any other lawsuit against Allstate over the legal claims in this case. OBJECT Write to the Court about why you do not agree with the Settlement. GO TO A HEARING Ask to speak in Court about the Settlement. DO NOTHING You get no payment. You give up rights. These rights and options—and the deadlines to exercise them—are explained in this notice. The Court in charge of this case still has to decide whether to approve the Settlement. If it does, and if any appeals are resolved in favor of the Settlement, then money will be distributed to those who timely submit a valid Claim Form and qualify for payment. Please be patient. Para una notificación en Español, llame o visite nuestro sitio web. 1 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM TABLE OF CONTENTS WHAT THIS NOTICE CONTAINS NOTICE OF CLASS ACTION SETTLEMENT ......................Error! Bookmark not defined. BASIC INFORMATION ................................................................................................................ 3 1. Why was this notice issued?..................................................................................... 3 2. What is this lawsuit about? ....................................................................................... 3 3. Why is this a class action? ........................................................................................ 3 4. Why is there a settlement?........................................................................................ 3 WHO IS IN THE SETTLEMENT.............................................................................................. 3 5. How do I know if I am part of the Settlement? ........................................................ 4 6. Are there exceptions to being included? .................................................................. 4 7. I am still not sure I am included. .............................................................................. 4 THE SETTLEMENT BENEFITS—WHAT YOU GET IF YOU QUALIFY ........................... 4 8. How much will payments be? .................................................................................. 4 HOW TO GET A PAYMENT—SUBMITTING A CLAIM FORM ......................................... 5 9. How can I get a payment? ........................................................................................ 5 10. When will I get my payment? .................................................................................. 5 11. What am I giving up to get a payment or stay in the class? ..................................... 6 EXCLUDING YOURSELF FROM THE SETTLEMENT........................................................ 6 12. How do I get out of the Settlement? ......................................................................... 6 13. If I do not exclude myself, can I sue Allstate for the same thing later? ................... 6 14. If I exclude myself, can I get a payment from this Settlement? ............................... 7 THE LAWYERS REPRESENTING YOU ................................................................................ 7 15. Do I have a lawyer in this case? ............................................................................... 7 16. How will the lawyers be paid? ................................................................................. 7 OBJECTING TO THE SETTLEMENT ..................................................................................... 7 17. How do I tell the Court if I do not agree with the Settlement? ................................ 7 18. What is the difference between objecting and asking to be excluded? .................... 8 THE COURT’S FINAL APPROVAL HEARING ..................................................................... 8 19. When and where will the Court decide whether to approve the Settlement?........... 8 20. Do I have to come to the hearing? ............................................................................ 9 21. May I speak at the hearing? ...................................................................................... 9 IF YOU DO NOTHING ............................................................................................................. 9 22. What happens if I do nothing at all?......................................................................... 9 GETTING MORE INFORMATION.......................................................................................... 9 23. How do I get more information about the Settlement? ............................................ 9 2 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM BASIC INFORMATION 1. Why was this notice issued? A Court authorized this notice because you have a right to know about the Proposed Settlement of this class action, including the right to claim money, and about your options regarding this Settlement, before the Court decides whether to give final approval to the Settlement. If the Court approves the parties’ Class Action Stipulation and Settlement Agreement (“Agreement”), and if any appeals are resolved in favor of the Settlement, then payments will be made to those who qualify and timely submit a valid Claim Form. This notice explains this Action, the Settlement, your legal rights, what benefits are available, who may be eligible for them, and how to get them. The Arizona Superior Court for the County of Mohave is overseeing this class action. The case is known as Hernandez v. Allstate Vehicle and Property Ins. Co., No. CV-2026 00048. The person who sued is called the “Plaintiff,” and the company she sued is called the “Defendant.” 2. What is this lawsuit about? The lawsuit claims that Allstate improperly deducted Nonmaterial Depreciation when adjusting some Arizona Structural Loss claims under Arizona property insurance policies. Allstate has denied all allegations that it acted wrongfully or unlawfully. 3. Why is this a class action? In a class action, one or more people called a Representative Plaintiff (in this case Lillie Hernandez) sue on behalf of people who have similar claims. All these people are “Class Members.” One court resolves the issues for all Class Members, except for those who exclude themselves from the class. 4. Why is there a settlement? The Court did not decide in favor of the Plaintiff or Defendant and has not found that Allstate did anything wrong. Instead, both sides agreed to settle. By settling, the parties avoid the cost of a trial and potentially an appeal, and the people who qualify will get compensation. The Representative Plaintiff and her attorneys think the Settlement is best for all Class Members. The Settlement does not mean that Allstate did anything wrong, no trial has occurred, and no merits determinations have been made. WHO IS IN THE SETTLEMENT To see if you are eligible for benefits from this Settlement, you first must determine if you are a Class Member. 3 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM 5. How do I know if I am part of the Settlement? If you received this Notice, then you have been identified as someone who is likely a Class Member. The Settlement Class includes: all policyholders, except for those listed in the Exclusions below, under any property insurance policy issued by Allstate, who made: (i) a Structural Loss claim for property located in the State of Arizona during the Class Period; (ii) where Allstate issued payment based on an Xactimate® estimate; and (iii) that resulted in an ACV Payment from which Nonmaterial Depreciation was withheld. “ACV Payment” is calculated by estimating the replacement cost value of the covered damage for a Structural Loss claim and subtracting the estimated Depreciation, including Nonmaterial Depreciation, and any applicable deductible. “Class Period” means April 25, 2017, through October 1, 2026, and is determined by the date of the initial ACV Payment. “Nonmaterial Depreciation” means application of either the “depreciate removal,” “depreciate non-material” and/or “depreciate O&P” option settings within Xactimate® software or similar depreciation option settings in competing commercial software programs. “Structural Loss” means physical damage to a home, building, manufactured home, condo, rental dwelling, or other structure in Arizona while covered by a property insurance policy issued by Allstate. 6. Are there exceptions to being included? Excluded from the Settlement Class are: (a) policyholders whose claims arose under labor permissive policy forms, i.e., those forms and endorsements expressly permitting the “depreciation” of “labor” within the text of the policy form; (b) policyholders who received one or more ACV Payments for a claim that exhausted the applicable limits of insurance; (c) policyholders whose claims were denied or abandoned without an ACV Payment; (d) Allstate and its officers and directors; (e) members of the judiciary and their staff to whom this Action is assigned and their immediate families; and (f) Class Counsel and their immediate families. 7. I am still not sure I am included. If you are not sure whether you are included in the Settlement Class, you may call the toll-free number 1-866-945-4242 or visit www.HernandezDepreciationSettlement.com THE SETTLEMENT BENEFITS—WHAT YOU GET IF YOU QUALIFY 8. How much will payments be? Class Members, who complete and sign a Claim Form and timely mail it to the proper address, or complete a Claim Form online, may be eligible for a payment. Under the settlement, Allstate has agreed to pay Class Members, who timely submit valid claims, determined as follows: 4 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM (a) for Class Members to whom all Nonmaterial Depreciation has not been paid (which is a majority of Class Members), 50% of the net estimated Nonmaterial Depreciation that was withheld from ACV Payments and not subsequently paid, plus simple interest at the rate of 10% annually from the date of the initial ACV Payment through the Effective Date; and (b) for Class Members who recovered all outstanding Depreciation through the claim process, a one-time payment ranging from $10 to $360, depending on the amount of Nonmaterial Depreciation withheld. You must submit a Claim Form in order to determine whether you are eligible for and the amount of your settlement payment. If you do not, you will not receive a settlement payment. For additional details on the payment terms, please see the Settlement Agreement, which is available at www.HernandezDepreciationSettlement.com,or call toll free 1-866-945-4242. HOW TO GET A PAYMENT—SUBMITTING A CLAIM FORM 9. How can I get a payment? To find out whether you are eligible for a payment, you must complete and return a truthful and accurate Claim Form. A copy of the Claim Form accompanies this notice. To return your Claim Form, you can either mail your Claim Form or complete your Claim Form online. If you want to mail your completed Claim Form, your Claim Form must be postmarked no later than January 29, 2027, and mailed to the following address: Allstate Hernandez Depreciation Settlement c/o Settlement Administrator 1650 Arch Street, Suite 2210 Philadelphia, PA 19103 If you want to complete your Claim Form online, you may do so on the Settlement Website at www.HernandezDepreciationSettlement.com before midnight Mountain Standard Time on January 29, 2027. You may obtain an additional Claim Form by calling the Administrator at 1-866-945-4242 or by visiting www.HernandezDepreciationSettlement.com. If you sign a Claim Form as a representative of a Class Member you must also submit written proof that you are a Legally Authorized Representative. 10. When will I get my payment? If the Court grants final approval of the Settlement, and if any appeals are resolved in favor of the Settlement, then payment will be mailed to eligible Class Members after the claims administration process is completed. This process can take time, so please be patient. 5 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM 11. What am I giving up to get a payment or stay in the class? Unless you exclude yourself, you are staying in the Settlement Class, and that means that you cannot sue Allstate and the Released Persons over the claims settled in this Action. It also means that all of the Court’s orders will apply to you and legally bind you. If you submit a Claim Form, or simply stay in the Settlement Class, you will agree to release all “Released Persons” of all “Released Claims.” “Released Persons” and “Released Claims” are defined in the Agreement, which you can request a copy of by calling 1-866-945-4242 or you can view the Agreement at www.HernandezDepreciationSettlement.com. EXCLUDING YOURSELF FROM THE SETTLEMENT If you do not want a payment from this Settlement, and/or if you want to keep the right to individually sue Allstate about the issues in this Action, then you must take steps to get out of the Settlement. This is called excluding yourself from—or “opting out” of the Settlement Class. 12. How do I get out of the Settlement? To exclude yourself from the Settlement, you must mail a letter to the Administrator requesting to be excluded from the Settlement of Hernandez v. Allstate Vehicle and Property Ins. Co., No. CV- 2026 00048. Your letter must include: your full name, address, and be signed. You must mail your request for exclusion postmarked by November 16, 2026, to: Allstate Hernandez Depreciation Settlement Attn: Exclusion Requests P.O. Box 58220 Philadelphia, PA 19102 More instructions are in the Agreement available at www.HernandezDepreciationSettlement.com. You cannot exclude yourself by phone, by email, or on the Settlement Website. The right to exclude yourself from the Proposed Settlement must be exercised individually, not as a member of a group and, except for a deceased or incapacitated Class Member, not by another person acting or purporting to act in a representative capacity. If you request exclusion as the representative of a Class Member, you must also submit written proof that you are the Legally Authorized Representative. 13. If I do not exclude myself, can I sue Allstate for the same thing later? No. Unless you exclude yourself, you give up any right to sue Allstate for the claims that this Settlement resolves. You must exclude yourself from the Settlement Class to sue Allstate over the claims resolved by this Settlement. 6 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM 14. If I exclude myself, can I get a payment from this Settlement? No. If you exclude yourself, you will not receive a payment from this Settlement. THE LAWYERS REPRESENTING YOU 15. Do I have a lawyer in this case? The Court appointed the following law firms to represent you and other Class Members as “Class Counsel”: Erik Peterson of Erik Peterson Law Offices, PSC; James Brandon McWherter of McWherter Scott Bobbitt, PLC; T. Joseph Snodgrass of Snodgrass Law LLC; Michaile Berg of Berg Law; and Broc Wickland and Jake Baldridge of Whitney Whitney Baldridge Atkinson, PLLC. You do not have to pay Class Counsel. If you want to be represented by your own lawyer and potentially have that lawyer appear in court for you in this case, you may hire one at your own expense. 16. How will the lawyers be paid? Class Counsel will ask the Court for up to $870,000 for attorneys’ fees and reimbursement of their expenses and will ask the Court to award the Representative Plaintiff up to $7,500 for representing the Settlement Class. Allstate has agreed not to oppose the request for fees and service award up to the above-referenced amounts. The Court may award less than the above amounts. Allstate will separately pay the fees and service award the Court orders. These payments will not reduce the amount distributed to Class Members. Allstate will also separately pay the costs to administer the Settlement. OBJECTING TO THE SETTLEMENT You can tell the Court if you do not agree with the Settlement or some part of it. 17. How do I tell the Court if I do not agree with the Settlement? If you do not want the Court to approve the Settlement you must file a written objection in the case with the Clerk of the Court and mail a copy to the Administrator by the deadline noted below. You must include: (i) the name of the case (Hernandez v. Allstate Vehicle and Property Ins. Co., No. CV-2026 00048), (ii) your full name and address, (iii) the specific reasons why you object to the Settlement, and (iv) whether you intend to appear at the Final Approval Hearing in person or through counsel. If you have a lawyer file an objection for you, he or she must follow all local rules and you must list the attorney’s name, address, bar number, and telephone number in the written objection filed with the Court and mailed to the Administrator. If you intend to appear at the Final Approval Hearing to object to the Settlement, you must also: (i) file with the Clerk of the Court a notice of intention to appear at the Final Approval Hearing by November 16, 2026; and (ii) mail copies of the notice to Class Counsel and Defendant’s Counsel, postmarked by November 16, 2026. The notice must include copies of any papers, exhibits, or other evidence that you plan to present to the Court in connection with the Final Approval Hearing. 7 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM You or your lawyer may appear at the Final Approval Hearing if you have filed a written objection as provided above. The right to object to the Proposed Settlement must be exercised individually by an individual Class Member, not as a member of a group or subclass and, except in the case of a deceased or incapacitated Class Member, not by the act of another person acting or purporting to act in a representative capacity. If you file an objection as the representative of a Class Member, you must also submit written proof that you are a Legally Authorized Representative. File the written objection with the Clerk of And mail a copy of the written objection to the the Court at the address below by November Administrator at the following address so that 16, 2026: it is postmarked by November 16, 2026: Court Administrator Clerk of Court Allstate Hernandez Depreciation Settlement Arizona Superior Court for the County of Attn: Objection Mohave P.O. Box 58220 401 E Spring St Philadelphia, PA 19102 Kingman, AZ 86401 18. What is the difference between objecting and asking to be excluded? Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class or the Settlement. If you exclude yourself, you have no basis to object, because the case no longer affects you. If you object, and the Court approves the Settlement anyway, you will be legally bound by the result. THE COURT’S FINAL APPROVAL HEARING The Court will hold a hearing to decide whether to approve the Settlement. You may attend and you may ask to speak, but you do not have to. 19. When and where will the Court decide whether to approve the Settlement? The Court has scheduled a Final Approval Hearing at 10:30 a.m. on December 15, 2026, at the Arizona Superior Court for the County of Mohave, via Zoom. Check the Settlement Website to make sure the Final Approval Hearing has not been rescheduled, and to see whether the Court has scheduled the hearing to proceed via video conference or teleconference, instead of in person. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court may listen to people who have asked to speak about an objection. The Court may also decide how much to award Class Counsel for fees and expenses for representing the Settlement Class and whether and how much to award the Representative Plaintiff for representing the Settlement Class. At or after the Final Approval Hearing, the Court will decide whether to approve the Settlement. It is not known how long this decision will take. 8 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM 20. Do I have to come to the hearing? You are not required to attend, and Class Counsel will answer any questions that the Court may have. If you wish to attend the Final Approval Hearing, you may come at your own expense. You may also pay your own lawyer to attend, but it is not necessary, unless you choose to have a lawyer appear on your behalf to object to the Settlement. 21. May I speak at the hearing? If you submitted a proper and timely written objection to the Settlement, you or your lawyer acting on your behalf may speak at the Final Approval Hearing. You cannot speak at the Final Approval Hearing if you exclude yourself. IF YOU DO NOTHING 22. What happens if I do nothing at all? If you do nothing, you will not get any payment from this Settlement. But, unless you exclude yourself from the Settlement, you will not be able to sue Allstate for the claims resolved in this Action. GETTING MORE INFORMATION 23. How do I get more information about the Settlement? This notice summarizes the Proposed Settlement. More details are provided in the Agreement. If you have questions or if you want to request a copy of the Agreement, call 1-866-945-4242 or visit www.HernandezDepreciationSettlement.com. PLEASE DO NOT CALL OR WRITE THE COURT, THE JUDGE OR HIS STAFF, OR ALLSTATE OR ALLSTATE’S COUNSEL FOR INFORMATION OR ADVICE ABOUT THIS SETTLEMENT 9 QUESTIONS? CALL 1-866-945-4242 TOLL FREE, OR VISIT WWW.HERNANDEZDEPRECIATIONSETTLEMENT.COM