Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—DConn: Insurance Company Not Liable For Cancelling Policy , (Jan 28, 2013)
Organizations Mentioned:AIG Casualty Company | American International Group | Whitman Breed Abbott & Morgan, LLC
By Jody Coultas, J.D.
Insurance policy holders could not state Connecticut Unfair Trade Practices Act (UTPA) claims against AIG Casualty Company for allegedly deceptive acts related to the cancellation of their policy, the federal district court in Hartford has held (Lee v. AIG Casualty Company, January 24, 2013, Squatrito, D.).
One day after AIG cancelled their automobile policy for non-payment of a premium, the policy holders were involved in a motor vehicle accident that resulted in claims against the insured. The policy holders were not home when AIG sent the cancellation notice. In its UTPA claim, the insured argued that AIG violated the Connecticut Unfair Insurance Practices Act (UIPA) and engaged in unfair and deceptive acts.
The policy holders could not show that AIG violated the UIPA by allegedly misrepresenting the insurance policy in the cancellation notice, according to the court. The UIPA makes it illegal to make, issue, or circulate a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy. The policy holders could not show that the notice of cancellation was false or that AIG knew or should have known that it made a false representation. Although it was untimely, the cancellation was valid and did not assert any false facts.
The court also found that the policy holders failed to state any independent claims under the UTPA. To state a UTPA claim, the policy holder needed to show that the practice was unfair. A practice is unfair if it offends public policy or is immoral, unethical, oppressive, or unscrupulous. Because the policy holders could not show that AIG engaged in any unfair or deceptive practices, the court dismissed the claims.
The case is No. 3:08CV01897.
Attorneys: Gerard N. Saggese, III (Whitman, Breed, Abbott & Morgan) for Thomas Lee. Michele C. Camerota (Nuzzo & Roberts) for AIG Casualty Company.
Companies: AIG Casualty Company
Cases: StateUnfairTradePractices ConnecticutNews