American Airlines Traveler Seeks Quick Win in Insurance Class Action

A consumer seeks a partial win in a class action lawsuit claiming American Airlines receives illegal kickbacks from the sale of travel insurance that it claimed was offered by third-party company Allianz Global Assistance.

Kristian Zamber has asked a Florida federal judge to grant a partial win in the American Airlines travel insurance class action lawsuit.

Zamber says the evidence provided in the case makes it clear that the airline was indeed receiving payments from each sale of travel insurance from a third party company advertised on American Airlines’ website, in violation of the Florida Deceptive and Unfair Trade Practices Act.

The plaintiff made this move in response to American Airlines’ earlier motion to dismiss the class account lawsuit in November 2016.

At that point, American Airlines claimed that the trip insurance kickback class action lawsuit lacked standing to claim violation of the Florida Deceptive and Unfair Trade Practices Act, and because Zamber had allegedly failed to show how he had been injured by American Airlines’ conduct.

Zamber claims that American Airlines advertised travel insurance to customers who purchased tickets through their website, suggesting that they purchase insurance products offered through Allianz Global Assistance.

The American Airlines class action lawsuit states that although the website states that the advertised “trip insurance products are sold by third-party insurance providers, not American,” American Airlines takes a piece of every sale made to Allianz.

Zamber claims that American Airlines violated the Florida Deceptive and Unfair Trade Practices Act because it did not disclose that it received profits from the sale of the trip insurance it advertises.

The American Airlines travel insurance class action further states that the airline was in violation of the law because it was allegedly receiving profits from the sale of insurance but did not have a license to sell insurance.

In his request for a partial win, Zamber alleges that though American Airlines claims that it did not gain a direct benefit from Zamber’s purchased insurance, the company also “never disput[ed] that it made money due to [Zamber’s] purchase of trip insurance through its website,” meaning that the company did allegedly receive profits from the sale.

Despite American Airlines’ attempt to have the case thrown out, Zamber re-asserted that the company was unjustly enriched from the sale of insurance.

He states that an earlier Florida case between State Farm Fire & Cas. Co. and Silver Star Health & Rehab established a precedence that “if an entity accepts benefits that it is not legally entitled to receive in the first place, Florida law provides for a claim of unjust enrichment.”

The plaintiff then goes on to note that Florida law does allow for people to make claims of unjust enrichment even if the enrichment came from an “indirect benefit.”

Zamber is represented by Scott B. Cosgrove, Alec H. Shultz, and Jeremy L. Kahn of León Cosgrove LLP.

The American Airlines Allianz Global Assistance Travel Insurance Kickbacks Class Action Lawsuit is Kristian Zamber v. American Airlines Inc., Case No. 1:16-cv-23901-JEM, in the U.S. District Court for the Southern District of Florida, Miami Division.