Lloyd’s Of London Hit With Federal Class Action Pointing At "Virtually Worthless" Insurance

Certain underwriters at Lloyd’s of London, insurance agencies, and Lloyd’s syndicates have been taken to court. A federal class action lawsuit has been filed with the United States District Court for the District of Hawaii over what were described as “virtually worthless” policies. The case centres on surplus lines insurance and points to an alleged scheme designed to drive Hawaiian homeowners away from state-established coverage. In a release, Foster Law Offices stated: “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).”