COA: Filed Rate Doctrine Bars UDTP Claims Related to Workers' Comp Rates Set by Rate Bureau
Plaintiff filed suit against defendants alleging unfair and deceptive trade practices and demanding a return of his entire premium balance. He also filed a complaint with the Rate Bureau, which was dismissed.
The COA held that Plaintiff's suit was barred by the filed rate doctrine, which provides that "a plaintiff may not claim damages on the ground that a rate approved by a regulator as reasonable is nonetheless excessive because it is the product of unlawful conduct." The COA specifically noted that this doctrine applies to UDTP claims.
Plaintiff also argued that a risk of loss did not attach where the insured Plaintiff had no employees and was not covered himself, and thus there was thus no consideration for the insurance contract. The COA rejected this argument, holding that because Plaintiff might have hired employees during the covered period, a risk of loss did in fact attach.