In an October 18, 2010 order, a federal judge has denied the Defendants’ motion to dismiss a putative class action alleging that Lloyd’s of London property insurance policies violate Florida law by omitting the existence of separate deductibles for hurricane damage.

The Plaintiffs seek to represent a class of policyholders who submitted claims for hurricane damage to Lloyd’s under surplus lines policies that did not contain Florida statutory language requiring property insurance policies to include a consumer warning about the existence of a separate hurricane deductible in 18-point or larger boldface type.

The Lloyds Defendants asserted that the Plaintiffs’ Fifth Amended Complaint should be dismissed, since section 626.913(4), F.S. states that “Except as may be specifically stated to apply to surplus lines insurers, the provisions of chapter 627 do not apply to surplus lines insurance authorized under ss. 626.913-626.937, the Surplus Lines Law.”

The statute, which was amended in 2009 to include the above provision, makes it applicable to all lawsuits filed after May 15, 2009.  The Court, however, determined that in the instant case, the Fifth Amended Complaint related to the prior litigation, which was commenced in 2008.  Hence, the legislative change did not prohibit the Plaintiffs’ cause of action.