Seneca Hit With Class Action Over Coinsurance Penalties

Law360, New York (January 17, 2013, 5:10 PM EST) -- A Seneca Insurance Co. unit was hit with a proposed class action Monday in Pennsylvania federal court alleging it shortchanges some policyholders by assessing a coinsurance penalty on the replacement cost of a damaged property instead of its actual cash value.

Policyholder Emanuel Ruth Investment Corp. alleges Seneca Specialty Insurance wrongly rejected its request to file a claim for the actual cash value of a damaged property and instead determined the claim according to the higher replacement value, which would force the company to pay a...
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