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INSURANCE LAW: Superior Court holds that private cause of action does not exist for alleged insurer price fixing and market manipulation

INSURANCE LAW: Superior Court Holds That Private Cause Of Action Does Not Exist For Alleged Insurer Price Fixing And Market Manipulation

The plaintiff homeowners alleged that they sustained property damage as a result of a fallen tree.  They further alleged that the defendant insurer was insolvent as a result of claims resulting from storms Irene and Sandy, and that the insurance company used incompetent individuals to process their claim, failed to pay and failed to communicate with plaintiff’s adjuster.

The court grants the insurer’s motion to strike the Unfair Insurance Practices and Unfair Trade Practice claims since they are predicated upon alleged misconduct in connection only with one insurance claim.  The court also strikes a fraud count based upon the plaintiff’s failure to allege detrimental reliance.  Finally, the court strikes a purported private cause of action for claims arising from price fixing and market manipulation, holding that Connecticut does not recognize such a private cause of action. 

Holt v. Safeco Ins. Co. of America (08/08/16)

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