Insureds Not Entitled To Costs Reminder: Pa. Appeals Court

Law360, Philadelphia (March 21, 2013, 4:09 PM EDT) -- Insurance companies do not have an affirmative obligation to inform policyholders of their responsibility to seek reimbursement for costs incurred while litigating claims, the Pennsylvania Superior Court ruled on Wednesday as it affirmed the dismissal of a putative class action against Erie Insurance Exchange.

In a 2-1 reported decision, a three-judge panel affirmed a Philadelphia Common Pleas court’s ruling that Erie, which was accused of systematically failing to reimburse its policyholders for costs associated with litigating claims, had no obligation to inform its customers of their...
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