Puritan Budget Plan, Inc. v. Amstar Insurance Co.

This is an appeal from an order dismissing a class action complaint for failure to state a cause of action. The plaintiffs are premium finance companies for private passenger automobile insurance policies issued by the defendant insurer. When these policies are cancelled, the insurer is required by statute to refund unearned premiums within thirty days. The issue is whether the insurer is liable for interest where the premiums are not refunded in thirty days. We hold that interest is recoverable and reverse.

The trial court rested its decision on the difference between the statute involving…