@macdaddy100111
If your itemized deductions did not exceed your standard deduction, then you did not itemize. Wanting to itemize or trying unsuccessfully to itemize doesn't count. Since you did not itemize, you did not deduct the PMI payments, so the refund of those payments is not taxable. You don't even enter it anywhere in your tax return. It doesn't matter whether PMI was or was not actually deductible in the years in question, because you didn't deduct it anyway.
You may not get a 1099-INT. They are only required to send you a 1099-INT if they paid you interest of $600 or more. If the total payment was a little over $1,000 it's very unlikely that $600 of it was interest. (A bank has to send a 1099-INT if they paid interest of $10 or more on money in a bank account. But this is not interest on a bank account or an investment. For interest on refunded insurance premiums a 1099-INT is only required if the interest is $600 or more.)
They have until January 31 to send you the 1099-INT if it's required. If you don't get a 1099-INT or some sort of statement of how much the interest was, you should make a reasonable effort to find out from the insurance company, or more likely from the law firm that filed the class action. But don't make yourself crazy about it. If you can't easily find out, just forget about it.
