Skip to main content

Lawsuit Accuses Lloyd's of London of Hawaiian Home Insurance Scam

Phil Hall
Jan 10, 2019
The Aloha State is in danger of saying “aloha” to housing unless a new wave of units comes to the market

 
 
A federal class action lawsuit has been filed that accuses Lloyd’s of London and its affiliated insurance brokers of steering Hawaiian homeowners away from the home insurance program established by the State of Hawaii.
 
According to a statement issued by the firm Scott+Scott Attorneys at Law LLP, the lawsuit alleges that Lloyd’s deceived Hawaiian homeowners “into purchasing Lloyd’s surplus lines homeowner’s insurance to insure their homes against peril. These Lloyd’s surplus lines insurance policies, which contained numerous exclusions, including a Lava Exclusion, are essentially worthless—amounting to no coverage at all.”
 
Scott+Scott noted that surplus lines insurance policies are made available only when no other home insurance coverage is available. The lawsuit claimed that Lloyd’s and its agents knew that homeowners could have qualified for insurance form the Hawaiian Property Insurance Association (HPIA), but the company pursue a strategy of “artificially inflating coverage limits beyond the $350,000 dwelling coverage limit offered through HPIA.”
 
The 60-page lawsuit added that these actions resulted in commissions that were “directly tied to the amount of premium steered to Lloyd’s, thereby incentivizing the Broker Defendants to maximize the amount of surplus lines insurance placed with Lloyd’s.” Lloyd’s did not publicly comment on the lawsuit.
Published
Jan 10, 2019
Helping the H.E.L.P.E.R.s

Federal bill poised to open up market to more teachers, first responders

Dec 01, 2023
Fidelity National Financial Hit By Cyberattack

Industry-leading provider of title insurance and settlement services radio silent on reported breach.

Nov 28, 2023
Citizens Bank Bids Farewell To Wholesale Mortgage Channel

In a strategic pivot, the Providence-based banking giant will stop accepting new wholesale mortgage submissions.

Nov 16, 2023
Surprising Surge In Mortgage Customer Satisfaction, J.D. Power Study Reveals

Study found first-time homebuyers were harder to satisfy, customers don't just shop rates.

Nov 16, 2023
Women Continue To Defy Homebuying Challenges, Representing 22% Of The Market, Survey Finds

Young, educated, diverse, and increasingly savvy, women homebuyers navigate homeownership hurdles with determination.

Nov 15, 2023
Better.com Stays Bullish On Industry Disruption Amid Q3 Losses

Despite a $340 million Q3 loss, Better.com's leadership emphasizes cost reductions, automation, and investment in technology.

Nov 15, 2023