Cohen v. American Security Ins. Co.

Dist. Ct. did not err in dismissing for failure to state cause of action, plaintiff’s complaint, alleging violation of Ill. Consumer Fraud and Deceptive Business Practices Act, as well as common law fraud, arising out of defendant-lender’s purchase of hazard insurance to cover plaintiff's home after plaintiff’s hazard insurance had lapsed, where plaintiff asserted that defendant had failed to disclose that it was receiving “kickback” from insurance company from which it purchased said insurance. Mortgage agreement required that plaintiff maintain hazard insurance throughout lifetime of loan and expressly provided that defendant could purchase said insurance and pass on costs to plaintiff that included compensation to it and its insurance affiliate, where as here, plaintiff allowed her insurance to lapse. Record also showed that defendant had warned plaintiff of increased premium due to her failure to keep her insurance policy current and provided plaintiff opportunity to obtain her own insurance even after it had purchased more expensive policy.