Dubuisson v. National Union Fire Insurance of Pittsburgh, P.A.
Decision Date | 26 July 2021 |
Docket Number | 15 Civ. 2259 (PGG) |
Parties | MANETTE DUBUISSON, and ALICE LACKS, Individually and On Behalf of All Others Similarly Situated, Plaintiffs, v. NATIONAL UNION FIRE INSURANCE OF PITTSBURGH, P.A., AMERICAN INTERNATIONAL GROUP, INC., CATAMARAN HEALTH SOLUTIONS, LLC, F/K/A CATALYST HEALTH SOLUTIONS, INC., F/K/A HEALTHEXTRAS, INC., ALLIANT SERVICES HOUSTON, INC., F/K/A JLT SERVICES CORPORATION, STONEBRIDGE LIFE INSURANCE COMPANY, F/K/A J.C. PENNEY LIFEINSURANCE COMPANY, TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY, FEDERAL INSURANCE COMPANY, A MEMBER OF THE CHUBB GROUP OF INSURANCE COMPANIES, and VIRGINIA SURETY COMPANY, INC., Defendants. |
Court | U.S. District Court — Southern District of New York |
This is a putative class action brought by Plaintiffs who purchased accident disability and medical expense insurance coverage provided by Defendants National Union Fire Insurance Company American International Group, Inc., Catamaran Health Solutions, LLC, Stonebridge Life Insurance Company Transamerica Financial Life Insurance Company, Federal Insurance Company, Alliant Services, and Virginia Surety Company, Inc. through the “HealthExtras Program.” The Complaint pleads (1) quasi-contract claims; (2) violations of New York General Business Law (“GBLâ€) §§ 349-350; and (3) fraud, fraud in the inducement, and aiding and abetting fraud. Plaintiffs seek the recovery of all premiums and fees they paid to Defendants in connection with the insurance coverage they purchased.
On September 19, 2016, this Court granted Defendants' first motion to dismiss, finding that Plaintiffs lack standing. (Dkt. No. 141) On April 12, 2018, the Second Circuit vacated and remanded, ruling that Plaintiffs have standing. (Dkt Nos. 151, 152)
Defendants Stonebridge Life Insurance Company and Transamerica Financial Life Insurance Company (collectively “Stonebridge”) have again moved to dismiss pursuant to Fed.R.Civ.P. 12(b)(6). (Dkt. No. 166) For the reasons stated below, the motion will be granted.
BACKGROUND[1]
Plaintiffs Alice Lacks and Manette DuBuisson reside in Brooklyn.[2] (Cmplt. (Dkt. No. 1) ¶¶ 6-7)
Defendant Stonebridge Life Insurance Company is a Vermont corporation, and Defendant Transamerica Financial Life Insurance Company is a New York corporation.[3] (Id. ¶¶ 12-13) Both entities are subsidiaries of Transamerica Life & Protection, and both are licensed as insurance companies and/or underwriters in New York and the United States. (Id.)
(Id. ¶ 40) Plaintiffs allege that HealthExtras' other marketing partners sent solicitations to their cardholders “that were very similar to, if not identical to, the American Express Solicitation.” (Id. ¶ 41) HealthExtras also solicited consumers via telephone and direct mail. (Id. ¶ 42)
Customers who expressed interest in the HealthExtras Program were sent letters containing the following representations:
(Id. ¶ 43) (alterations in Cmplt.) Plaintiffs allege that HealthExtras - “in concert and conspiracy” with the other Defendants, including Stonebridge - sent New York residents direct mail solicitations with the following misleading statements:
(Id. ¶ 44) (alterations in Cmplt.)
(Id. ¶ 54)
According to Plaintiffs, Stonebridge and the other Defendants “had the right to, and did, review and approve all written materials related to the HealthExtras Program, as well as communications relating to the HealthExtras Program and the coverage under the underlying Policies . . . .” (Id. ¶ 55)
Plaintiffs contend that the insurance policies issued in connection with the HealthExtras Program violate New York insurance laws and regulations, rendering the policies “illegal, against public policy and void ab initio under New York law.” (Id. ¶ 3)
According to Plaintiffs, the HealthExtras Program's disability and medical insurance coverage was provided under (1) “group and/or blanket accident disability insurance policies[, ]” and (2) “group and/or blanket emergency accident and sickness medical expense policies” issued by the defendant insure...
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