S.A.F. La Sala Corp. v. CNA Insurance Companies
Plaintiffs S.A.F. La Sala Corp. and La Sala Mason Corp. (collectively La Sala) obtained a comprehensive general liability policy from defendant Transcontinental Insurance Co., an affiliate of CNA Insurance Companies. The policy included a composite rate change endorsement establishing a minimum premium of $165,827. Following an audit, the earned premium was determined to be $107,336. Transcontinental refunded La Sala the difference between the estimated and minimum premiums, which was $55,275. La Sala initiated legal action, contending they were owed an additional $58,491, representing the difference between the estimated and earned premiums, and the motion court initially granted summary judgment in their favor. This appellate court reversed the lower court's decision, denying La Sala's motion for summary judgment and granting Transcontinental's cross-motion, ruling that the endorsement clearly mandated the retention of the minimum premium and did not violate New York Insurance Law.