Plaintiffs Did Not Have Private Causes of Actions Against Insurance Companies For Allegedly Selling “Worthless” Policies

Lemy v. Direct General Fin. Co. (U.S. District Court for M.D. Fla. 2012)

Two individual plaintiffs brought suit against eleven insurance companies for allegedly selling worthless and illegal surplus line automobile insurance policies. More specifically, the plaintiffs alleged violations of (1) § 626.924, which requires a surplus line policy to include two specific disclaimers; (2) § 626.916(1)(a), which requires a diligent search for a general line before the sale of a surplus line; (3) §§ 627.062 and 627.0651, which regulate a general line policy’s price; § 627.410, which requires a general line insurer to report policy information to the Office of Insurance Regulation; and (4) § 627.8405, which prohibits the financing of an automobile club membership or of a product “not regulated” by the insurance code.

The Middle District rejected the claims, emphasizing that none of the sections allegedly violated provided a private right of action. Therefore, the individual plaintiffs lacked the right to sue under the statute.

Explore posts in the same categories: Federal Court in Florida, U.S. District Court for the Middle District of Florida

Tags: No Private Right of Action, Surplus Lines

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