Lloyd’s Lava Settlement

SETTLEMENT WEBSITE FOR: AQUILINA, et al. v. CERTAIN UNDERWRITERS AT LLOYD’S LONDON, No. 1:18-cv-00496-ACK-KJM (D. Haw.)

If you purchased a surplus lines insurance policy for a residential property located in Lava Zone 1 on the Island of Hawai‘i with a Lava Exclusion at any time during the period of January 1, 2012 through and including May 4, 2018 that was brokered through Monarch and underwritten and/or subscribed to by Underwriters, you are eligible to receive a payment from a class action settlement.

SETTLEMENT INFORMATION:

A settlement has been reached in —Aquilina v. Certain Underwriters at Lloyd’s London, et al., No. 18-cv-00496-ACK-KJM (D. Haw.), which arose from the purchase of surplus lines homeowners’ insurance for residential properties located in Lava Zone 1 on the Island of Hawai‘i that was brokered by Monarch and was underwritten and/or subscribed to by Underwriters that contained an exclusion for the peril of lava and/or lava flow.

The defendants are Lloyd’s Syndicates 2003, 318, 4020, 2121, 2007, 1183, 1729, and 510 (collectively, “Underwriters”), Borisoff Insurance Services, Inc. d/b/a Monarch E&S Insurance Services, Specialty Program Group, LLC d/b/a SPG Insurance Solutions, LLC (collectively, “Monarch”), Aloha Insurance Services, Inc. (“Aloha”), and Ilikea LLC d/b/a Moa Insurance Services Hawaii (“Moa”) (and together with Aloha, Monarch, and Underwriters, “Defendants”).

The lawsuit asserts claims for violations of HRS §§480-1, et seq. (as to all Defendants), breach of the implied covenant of good faith and fair dealing (as to Underwriters), and negligence and unjust enrichment (as to Moa and Aloha).  The lawsuit primarily alleges that Defendants violated the diligent search requirement of the Hawai‘i Surplus Lines Act.  Defendants deny these allegations, any wrongdoing, and that they are liable in any amount to the affected individuals.

WHO IS A CLASS MEMBER?

The Class includes all individuals who purchased a residential surplus lines insurance policy for a residential property located in Lava Zone 1 on the island of Hawai‘i with a Lava Exclusion at any time during the period of January 1, 2012 through and including May 4, 2018 (the “Class Period”) that was brokered through Monarch and underwritten and/or subscribed to by Underwriters.

THE SETTLEMENT:

The Settlement provides that Defendants have agreed to pay $1.8 million dollars into a common fund which will be used to pay all Class Member distributions, and any Court-approved reasonable Plaintiffs’ attorneys’ fees and expenses, Settlement Administrator’s costs and expenses, and Plaintiffs’ Service Awards up to $2,500 to each of the two sets of Plaintiffs (for a maximum total of $5,000). Certain Defendants also have agreed to pay up to an additional $50,000 to defray the Settlement Administrator’s costs and expenses. Based on Class Counsel’s estimate, Class Members may be entitled to obtain approximately 100% of the premiums they paid to Defendants during the Class Period. Payments will be automatically made to each Class Member based on the business records Defendants maintained relating to the residential property insurance they sold to the Class.

• The deadline to exclude yourself or object to Class Counsel’s Fee Request was December 6, 2021.

• The revised deadline for Class Counsel to file the Final Approval Motion is TBD.

• The revised deadline to object to the Final Approval of the Settlement is TBD.

• The final approval hearing for the Settlement is has been vacated pending to further proceedings.

• The Court in charge of this case still has to decide whether to approve the Settlement. Payments will be made if the Court finally approves the Settlement and after any appeals are resolved. Please be patient.