Insurer must defend COVID-19 tuition refund suits: Appeals court - Business Insurance

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Insurer must defend COVID-19 tuition refund suits: Appeals court - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Insurer must defend COVID-19 tuition refund suits: Appeals court by Gavin Souter Coronavirus , Coverage Disputes Jun 11, 2026 Hofstra University and St. John’s University can continue seeking coverage for COVID-19 tuition refund lawsuits because the underlying complaints sought damages beyond the return of tuition and fees, a New York appeals court ruled Tuesday. In Hofstra University et al. v. United Educators , the Appellate Division of the New York Supreme Court, First Department, unanimously affirmed a lower court’s decision denying United Educators’ motion to dismiss the universities’ coverage suit. The dispute arose from class actions filed after the universities shifted to online instruction during the COVID-19 pandemic in 2020. Students alleged they had paid for an in-person educational experience and sought reimbursement of tuition and fees, along with compensatory, punitive and statutory damages, injunctive relief and other remedies. United Educators, a Bethesda, Maryland-based reciprocal risk retention group, denied the universities’ requests for defense and indemnification, arguing that its policies excluded losses arising from “any demand for the return of funds.” In March 2025, a New York trial court ruled that the exclusion plainly encompassed tuition and fees but allowed the case to proceed because the underlying complaints sought relief beyond reimbursement of those payments. The appeals court agreed, holding that the exclusion barred claims for repayment of tuition and fees because the term “funds” included amounts students paid for tuition and fees. However, because the underlying complaints also sought other forms of damages that potentially fell within coverage, United Educators’ duty to defend was triggered. The court also rejected the insurer’s argument that public policy barred coverage because the universities were being asked to return funds wrongfully acquired, finding that the underlying suits did not allege that the institutions had improperly obtained the tuition payments. Related News Willis Re hires former Guy Carpenter Bermuda chief June 11, 2026 California cumulative trauma comp claims rise sharply June 11, 2026 Amwins, Dragoneer make bid $5.4B for Steadfast June 11, 2026 Mexico doubles parametric cat cover June 11, 2026 Gallagher takes majority stake in Saudi broker June 11, 2026 Quake to result in limited insured losses: A.M. Best June 11, 2026 Zurich, Jensten sign five-year capacity deal June 11, 2026 Typhoon threat rises in Japan June 11, 2026 Helia names new CEO June 11, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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