Lawsuit Accuses Lloyd's of London of Hawaiian Home Insurance Scam – NMP Skip to main content

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

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.
About the author
Published
Jan 10, 2019
July CPI Eases Mortgage-Rate Risk, But Doesn’t Promise Relief

Consumer inflation rose just 0.1% in July, reducing pressure for a September Fed rate hike as mortgage rates remain near their highest levels of the year

Aug 13, 2026
The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Jul 30, 2026
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Jul 15, 2026
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Jul 02, 2026