Arch, Red Sky Insurance No Payout for Ski Passes Class Action

Not long ago, a couple of complaints were filed against ski resort companies who had had to close down for the remainder of the season because of the Covid-19 pandemic. The defendants in at least one of those cases said there would be no refunds for ski passes unless the buyers had also bought insurance for the passes. This complaint brings suit against two insurance companies, Arch Insurance Company and Out of Towne, LLC, which does business as Red Sky Travel Insurance. It alleges that they will not provide refunds for passes either.

The class of this action is all persons who bought a Ski Pass for the 2019-2020 ski season and bought optional insurance from Arch or Red Sky, but who were denied coverage for the loss of the use of their passes after resorts closed in March 2020, through no fault of their own.

When consumers buy Ikon Passes for resorts owned by Alterra Mountain Company, they are offered the option of also buying insurance to cover the passes. When the plaintiff in this class action, Chance Staley, bought an Ikon Pass for the 2019-2020 season, he also bought pass insurance.

On March 14, 2020, Alterra announced it was closing its resorts due to the Covid-19 pandemic. The resorts would be closed from the following day until “further notice.” The various state orders requiring the closure of all nonessential businesses also would have affected the resorts, because skiing and snowboarding are not generally regarded as essential businesses.

Because of this, Staley was not able to use any of the Alterra resorts or their facilities after that date to use his ski pass. Staley therefore filed a claim with Red Sky. The complaint claims that Red Sky denied the claim[,] stating [the] insurance policy does not provide coverage for facility closures. The denial letter does not address quarantine.”

The insurance policy offers reimbursement “up to the Maximum Benefit Amount” for cancellations for a number of reasons, including “for Other Covered Events; … provided that any such covered Unforeseen reason occurs while coverage is in effect for You…”

It defines “Unforeseen” as “not anticipated or expected and occurring after Your purchase of the Season Pass Cancellation and the Season Pass Interruption coverage.

The policy defines “Other Covered Events” as, in part, “You being hijacked, quarantined, required to serve on a jury…, served with a court order to appear as a witness in a legal action…”

The policy does not define “quarantined.”

There is an exclusion section, but the complaint claims it does not contain exclusions for “viruses, pandemics, related government orders or actions taken by resorts.”

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Arch, Red Sky Insurance No Payout for Ski Passes Complaint

July 28, 2020

Not long ago, a couple of complaints were filed against ski resort companies who had had to close down for the remainder of the season because of the Covid-19 pandemic. The defendants in at least one of those cases said there would be no refunds for ski passes unless the buyers had also bought insurance for the passes. This complaint brings suit against two insurance companies, Arch Insurance Company and Out of Towne, LLC, which does business as Red Sky Travel Insurance. It alleges that they will not provide refunds for passes either.

Arch, Red Sky Insurance No Payout for Ski Passes Complaint

Case Event History

Arch, Red Sky Insurance No Payout for Ski Passes Complaint

July 28, 2020

Not long ago, a couple of complaints were filed against ski resort companies who had had to close down for the remainder of the season because of the Covid-19 pandemic. The defendants in at least one of those cases said there would be no refunds for ski passes unless the buyers had also bought insurance for the passes. This complaint brings suit against two insurance companies, Arch Insurance Company and Out of Towne, LLC, which does business as Red Sky Travel Insurance. It alleges that they will not provide refunds for passes either.

Arch, Red Sky Insurance No Payout for Ski Passes Complaint
Tags: Denial of Benefits, Insurance