Image: Foster Law Offices
Lloyd’s of London “Steered” Hawaii Homeowners by Artificially Inflating Coverage in Kickback Scheme, Federal Lawsuit Alleges
News Source: Globe Newswire
HILO, Hawaii, Jan. 09, 2019 (GLOBE NEWSWIRE) — A federal class action lawsuit alleges that Lloyd’s of London and its affiliated insurance brokers “steered” Hawaiian homeowners throughout the state away from comprehensive home insurance coverage established by the State of Hawaii.
The lawsuit states that Lloyd’s and its agents deceived consumers, offering Lloyd’s surplus lines insurance without performing the due diligence required under Hawaii law to place surplus lines insurance. Lloyd’s and its agents knew that they were not allowed to place surplus lines insurance unless other insurance was not available and the insurance coverage amounts exceeded the coverage available through traditional insurance carriers, including the government-established insurance coverage offered through the HPIA (Hawaii Property Insurance Association). Consumers could have qualified for HPIA-sponsored insurance, but Lloyd’s and its agents deceived them by artificially inflating coverage limits beyond the $350,000 dwelling coverage limit offered through HPIA, the suit alleges.