Rate Rule Saves Everest From NY Premium-Gouging Suit

Law360, New York (November 22, 2013, 3:15 PM EST) -- Everest National Insurance Co. evaded class claims Tuesday of illegally charging homebuilding contractors to insure a risk explicitly excluded from coverage, when a New York appeals court held that its premium rates were state-approved and therefore reasonable.

A unanimous panel of the Appellate Division’s Second Judicial Department dismissed allegations that Everest improperly charged additional premiums to builders using uninsured subcontractors when its policies contained an exclusion for claims arising from precisely such subcontracted work. The panel found the filed-rate doctrine, which immunizes premiums approved by state...
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