Category Archives: Uncategorized

Including a homeowner who was awarded hundreds of thousands by HPIA on one house and less than $9k by Lloyd’s on the house he owned right next door.

HILO, HAWAII—Leilani Estates homeowner and life-long Hawaii resident, Howard Konanui is one of 11 Lloyd’s of London policyholders who joined dozens of others in lawsuits against Lloyd’s and its affiliates. In this latest Lloyd’s lawsuit, the plaintiffs’ homes have experienced delays, denials and unprecedented dismissiveness in connection with claims filed on homes that have sustained catastrophic damage following the Kilauea eruption.

Mr. Konanui owned two homes located right next to each other in Leilani Estates. Both homes sustained significant damage. One home was insured by the Hawaii Property Insurance Association, commonly known as HPIA. The other home was insured by a Lloyd’s of London and an affiliate called Worldwide Facilities.

Shortly after making his claim with HPIA, the state insurance carrier determined that the damage to his home was so significant that HPIA declared the home a total loss. Based on the total loss determination, HPIA tendered hundreds of thousands of dollars in policy limits to Mr. Konanui.

Mr. Konanui’s experience with Lloyd’s of London was much different. Even though his two homes were located right next to each other and that the homes sustained nearly identical damage, Lloyd’s of London offered Mr. Konanui a mere $8,880.89 as full settlement of his claims. In an effort to save hundreds of thousands of dollars owed to Mr. Konanui, Lloyd’s refused to declare this second home a total loss. In addition to paying a hefty $2,034.24 premium to Lloyds, Mr. Konanui was forced to spend months of his own time corresponding with  Lloyd’s claims adjuster, John Mullen & Co.

He was even forced to hire his own contractors to inspect and draft damage assessments that were provided to John Mullen & Co. Despite his best efforts, Lloyd’s refused to declare the home a total loss and refused to revise its offer. As a result, Mr. Konanui had no choice other than to turn to Big Island attorney, Jeffrey E. Foster and join the dozens of other Puna homeowners in filing a lawsuit against Lloyd’s of London.

Mr. Konanui, along with ten other Lloyd’s policyholders, are the latest group of Puna homeowners to file a lawsuit against Lloyd’s of London and its affiliates for breach of contract, bad faith, conspiracy and deceptive practices. Not only have these homeowners been offered pennies on the dollar for their claims, but they have been forced to wait months just to receive the bad news and spend countless hours emailing claims adjusters to explain the extensive damage sustained by their homes.

The new 138-page complaint was filed by Foster, who represents over 50 clients in claims against Lloyd’s of London and their affiliates.

“Mr. Konanui’s situation offers a unique insight into Lloyd’s claims handling practices. He had two homes located right next to each other with different insurance carriers. The fact that HPIA paid Mr. Konanui policy limits of hundreds of thousands of dollars in a prompt and efficient manner stands in stark contrast to the month’s long struggle Mr. Konanui was forced to endure only to receive news that he would be offered a mere $8,000 by Lloyd’s of London. It is this type of treatment that has left those insured by Lloyd’s of London with no option other than to look to the courts for help,” Foster stated.

Click To View: Berry v. Lloyd’s, et.al., Civil No. 19-1-020- Master Administrative Complaint

January 16, 2019, 11:44 AM HST (Updated January 16, 2019, 12:25 PM)

A Town Hall meeting will be held in response to the latest developments in the Lloyd’s of London litigation that is going on with Puna homeowners, will be hosted by Attorney at Law, Jeffrey E Foster on Wednesday, Jan. 23, 2019, from 4 to 6 p.m. at the Grand Naniloa Hotel Palm Room in Hilo.

The meeting will include a free presentation as well as a question and answer session about the latest developments in the Lloyd’s of London lawsuit.

According to a press release, “The meeting will feature several special guest presenters. Foster and his team represent dozens of homeowners whose insurance claims have been denied, delayed and handled in bad faith by Lloyd’s of London and its affiliates.”

This town hall meeting will provide updates and information on Lloyd’s of London litigation with a focus on claims involving still-standing homes. Homeowners seeking further information can reach Foster Law Offices by going online or calling (808) 348-7800.

The Grand Naniloa Hotel is located at 93 Banyan Drive in Hilo.

HILO, Hawaii, Jan. 09, 2019 (GLOBE NEWSWIRE) — A federal class action lawsuit alleges that Lloyd’s of London and its affiliated insurance brokers “steered” Hawaiian homeowners throughout the state away from comprehensive home insurance coverage established by the State of Hawaii.

The lawsuit states that Lloyd’s and its agents deceived consumers, offering Lloyd’s surplus lines insurance without performing the due diligence required under Hawaii law to place surplus lines insurance.  Lloyd’s and its agents knew that they were not allowed to place surplus lines insurance unless other insurance was not available and the insurance coverage amounts exceeded the coverage available through traditional insurance carriers, including the government-established insurance coverage offered through the HPIA (Hawaii Property Insurance Association). Consumers could have qualified for HPIA-sponsored insurance, but Lloyd’s and its agents deceived them by artificially inflating coverage limits beyond the $350,000 dwelling coverage limit offered through HPIA, the suit alleges.

One policyholder saw his dwelling coverage limit increased to $351,000 according to the complaint, exactly $1,000 over the government’s coverage limit of $350,000. The policyholder was never told about the government-established coverage known as HPIA (Hawaii Property Insurance Association); sadly, the policyholder’s home was destroyed after the Kilauea eruption in May and his claim was denied by Lloyd’s of London, according to the suit.

In addition, the lawsuit alleges that insurance brokers “received kickbacks from Lloyd’s for steering [homeowners] to the Lloyd’s surplus lines policies in the form of increased commissions.”

The complaint, filed December 21, 2018, alleges that Hawaiian homeowners were steered “into purchasing Lloyd’s surplus lines homeowner’s insurance to insure their homes against peril. These Lloyd’s surplus lines insurance policies, which contained numerous exclusions, including a Lava Exclusion, are essentially worthless –amounting to no coverage at all.”

Surplus lines insurance policies are made available only when no other home insurance coverage is available. Lloyd’s is the top writer of surplus lines insurance in the United States – writing 23% of the U.S. surplus lines policies nationwide in 2017, totaling $10.3 billion in premiums. According to the National Association of Insurance Commissioners and the Center for Insurance Policy and Research, in 2017, Lloyd’s syndicates wrote approximately $52 million in surplus lines premium in Hawaii.

Click to View Copy of Complaint: Aquilina v Lloyds Complaint – filed

HILO, HAWAII—For the second time in less than a month, Third Circuit Judge Henry Nakamoto entered an order denying a motion to dismiss a lawsuit brought by Lloyd’s of London against Puna homeowners. Lloyd’s sought the dismissal of the bad faith, consumer protection, and conspiracy claims in a lawsuit filed by Susie Osborne, the founder and director of Hawai’i Island’s Kua o Ka La New Century Charter School.

The claims in Ms. Osborne’s lawsuit are based on the failure by Lloyd’s and others to honor Osborne’s insurance claim in good faith following the destruction of the Osborne home after the Kilauea eruption in May of 2018.

Click to View A Copy of the Order:  Osborne MTD Order

By Big Island Now

11/23/2018

A week after losing a motion to dismiss in Hawaiian state court, Lloyd’s of London has abruptly reversed all denials of claims for victims of the Kīlauea Volcano eruption that began on May 3, 2018. Lloyd’s has agreed to pay policy limits plus 10% interest to policyholders who were previously denied coverage by Lloyd’s, a payout estimated to be in tens of millions.

After the volcano eruption, Lloyd’s denied all claims made by homeowners whose homes were destroyed and personal belongings lost due to fire or other cause.

“I couldn’t be happier for our clients and all of the people in Pāhoa who lost so much since the eruption of Kīlauea,” said Jeffrey Foster who represented several dozen victims of Lloyd’s alleged deceptive practices and bad faith claims. “We applaud Lloyd’s for taking a step in the right direction. However, it is important to note that the decision by Lloyd’s to set aside the unenforceable and illegal ‘lava exclusion’ cannot remedy the bad faith and deceptive practices claims against Lloyd’s of London and its agents. We look forward to continuing with lawsuits on behalf of our clients and others seeking to hold Lloyd’s legally accountable for the manner in which policyholders were treated after losing everything in one of the most catastrophic property losses here in Hawai‘i”

Click To Read More

By TOM CALLIS Hawaii Tribune-Herald | Saturday, November 24, 2018, 12:05 a.m.

HILO — Lloyd’s of London has agreed to pay policyholders whose claims were denied following the Kilauea eruption, according to an attorney suing the company.

Kona attorney Jeff Foster said the payments will be made to those who experienced a total loss and were denied because of controversial “lava exclusion” language. He said that should affect dozens of policyholders, with payments totaling “tens of millions” of dollars.

To Read More

August 20, 2018, 10:43 AM

Kealakekua Attorney Jeffrey E. Foster will offer a free presentation and question-and-answer session for Puna residents on Thursday, Aug. 23, 2018, from 5  to 7 p.m. regarding Lloyd’s of London litigation.

Lloyd’s of London issued hundreds of homeowner’s insurance policies to people living in lava zones throughout Hawai‘i.

Despite collecting millions of dollars in premiums, Lloyd’s has failed to honor claims filed by the people who have lost everything due to this natural disaster.

To Read More

By Moanike’ala Nabarro

KITV 4 Island News

Honolulu, Hawaii news, sports & weather – KITV Channel 4

International insurance giant, Lloyd’s of London, slapped with another lava insurance lawsuit.

A third Leilani Estates resident is suing the company after losing her home and charter school to lava.

“Truly had a beautiful home, big high ceilings, nice garden, my three cats,” Susie Osbourne, Leilani Estates home owner said.

Osbourne is still reeling after losing her house on Mohala Street to lava.

After one of the first fissures surfaced in her subdivision, all was lost. Still she hoped recovery was in reach, she kept up with her Lloyds of London home insurance policy.

But the company informed her by phone it wouldn’t cover her claim.

“The whole situation is traumatic and difficult, then to find out that you’re being denied coverage, that you’ve paid in good faith there’s no words to describe,” Osbourne said.

To Read More

August 17, 2018, 8:08 AM HST (Updated August 17, 2018, 9:52 AM)

Another lava lawsuit has been filed agains Lloyd’s of London according to attorney Jeffrey Foster, a Hawai‘i attorney representing Susie Osborne, the beloved founder and director of  Hawai‘i Island’s Kua o Ka Lā New Century Charter School, who is taking on a network of affiliated agents, brokers, and adjusters tied to Lloyd’s of London after they allegedly sold her a useless Lloyd’s certificate of home insurance when better options were available, and then illegally denied her coverage after her home burned to the ground, according to a new lawsuit filed by Foster Law Offices.

“Lloyd’s of London, along with another unlicensed and unregistered company calling itself Affirmative Risk Management (ARM) and others were intent on denying Ms. Osborne’s claims for the loss of her home without proper investigation and without ever setting foot on her property,” said Foster. “The alleged deceptive practices and bad faith conduct towards Susie and numerous other homeowners in Puna is grossly unfair and irresponsible. Even more troubling is the fact that Susie could have obtained better coverage and a better policy through the Hawaii Property Insurance Association that carried with it the regulatory oversight of the State protecting its insureds like Susie and promptly paying claims.”

Osborne allegedly was never told of the HPIA option by her local insurance agent, according to the lawsuit, the third lawsuit filed against Lloyd’s by Foster Law Offices in recent weeks. Not only has Osborne been forced to deal with losing her home and having Lloyd’s illegally deny her claim, but she has also lost two of her pet cats in the fire.

To Read More