For many who had travel plans in 2020, frustrations regarding rescheduled or canceled trips have mounted. Because of the COVID-19 pandemic, millions of travelers have been heavily impacted by increased health risks and the related quarantine orders and government travel restrictions. In addition to countless flight and lodging cancellations, thousands of ski trips to the mountains were disrupted. Many travelers purchased insurance to cover the costs of their ski passes only to have Arch Insurance renege on its promise to reimburse ski pass costs in the event of a quarantine order. Because of this, plaintiffs filed a multitude of lawsuits against various travel insurers, some of which have now been consolidated into class action lawsuit against each specific insurer, the most recent of which is Arch Insurance Company.
Consolidation of Arch Insurance Class Action Lawsuits
Just this month, the Judicial Panel on Multidistrict Litigation (JPML) made the decision to group the growing number of lawsuits by specific insurers regarding travel insurance for short-term ski passes. In the now consolidated lawsuits, the plaintiffs have alleged that they purchased optional insurance for short-term ski passes, but their claims under the policy were denied following resort closures that rendered their passes unusable.
Claim issues with Arch Insurance Company began in the spring when plaintiffs purchased Ikon ski passes in exchange for access to resorts owned and operated by Alterra Mountain Company and its partners during the 2019-2020 ski season. In order to ensure they would be able to receive a refund in the event they were unable to use the Ikon passes, the plaintiffs each paid an additional fee for pass insurance that was underwritten and administered by Arch Insurance Company.
According to the new consolidated lawsuits, Alterra announced in March that it would be closing its resorts and suspending operations indefinitely in response to the COVID-19 pandemic. Because of the closures and state mandated orders enforcing them and urging travelers to stay home, the plaintiffs were then obviously unable to ski or enter Alterra’s resort facilities and thus could not use their purchased Ikon passes. While each plaintiff did timely submit an insurance claim under their Arch policy, the insurer ultimately denied the claims.
The consolidation of ski pass insurance cases against Arch Insurance Company highlights the potential for further consolidation of COVID-19 related travel insurance disputes.
Ski Pass Insurance Denials and COVID-19
Due to the ongoing COVID-19 pandemic, ski pass insurance claim denials have been on the rise for those who made travel plans prior to the state-mandated quarantines and stay at home orders. This has unfortunately left many who had purchased ski pass insurance unsure of what to do when their claims are denied for up to thousands of dollars in certain cases.
Unfortunately, since most travel or ski pass insurance plans include a specific list of covered cancellation reasons – such as quarantine – it can be difficult to understand the fine print of what is and isn’t covered. Because of the complexities involved with travel insurance claim delays, underpayments, and denials, it’s incredibly important to consult an experienced insurance claim denial attorney.
Texas Travel Insurance Claim Denial Attorneys
Having to cancel or postpone travel plans has become the norm due to coronavirus quarantines and travel restrictions. Just as travelers have come to terms with canceling their vacation plans, many have found themselves fighting with insurers.
At Raizner Law, we understand these frustrations and will work with you to hold travel insurers accountable for wrongfully delayed, grossly underpaid, or even outright denied claims. If you or someone you know has had a travel insurance claim disputed, underpaid, or denied, you could be entitled to financial compensation. Contact the attorneys at Raizner Law today to learn more about how we can help.