NY Universities Get a Win on Insurance for Tuition Class Actions

An insurer prematurely excluded coverage for a pair of universities facing class actions over tuition and fees students paid during the Covid-19 pandemic, a New York appellate panel ruled, holding that other underlying demands were potentially covered.

An exclusion in United Educators’ policies issued to Hofstra University and St. John’s University bars coverage for any loss related to a “return of funds.” However, the underlying class actions brought by students who were required to undergo remote instruction in 2020 also sought compensatory, punitive, or statutory damages that may not fall under the exclusion, according to a five-justice panel decision Tuesday ...