COVID-19 Travel Insurance Case Survives Dismissal Motion in Calif. Federal Court

SAN DIEGO — A California federal judge has refused to dismiss an action accusing a travel insurance company and its underwriter of unlawfully refusing to refund a policyholder’s premium after his cruise was canceled due to the COVID-19 pandemic.

In a Sept. 23 order, Judge William Q. Hayes of the U.S. District Court for the Southern District of California found the plaintiff adequately alleged his claim for unjust enrichment because the allegations support an inference that defendants unjustly retained the premium for post-departure coverage in violation of the state’s unfair competition law.

Travel Insured International Inc. administers single trip insurance …