DECISION & ORDER AFS/IBEX (“Plaintiff”) brings this action against AEGIS Managing Agency Limited, CRC Insurance Services, Inc., and Transportation Writers, Inc. (“Defendants”) for breach of contract under New York Law. Plaintiff paid Defendants $2,548,200.00 in insurance premiums under a policy that was terminated before the full term. Plaintiff now alleges Defendants owe Plaintiff $1,643,343.02 in unearned premiums. Defendants argue all premiums were earned under the terms of the policy and therefore they are entitled to retain all premiums paid. Both parties now move under Rule 56 of the Federal Rules of Civil Procedure for summary judgment. For the reasons stated below, Plaintiff’s motion for summary judgment is GRANTED and Defendants’ motion for summary judgment is DENIED. BACKGROUND1 Plaintiff initiated this lawsuit on January 30, 2018. ECF No. 1. The operative complaint was filed on February 20, 2019. ECF No. 41. On August 12, 2019 the parties filed cross motions for summary judgment. ECF Nos. 48, 49. Plaintiff is an insurance premium finance company. Stip. 15. Defendant AEGIS is an excess line insurance carrier and broker. Id. 16. In 2016, Red Hook, a construction company doing business in New York, sought commercial insurance from Defendant AEGIS. Id.
19- 22. Defendant AEGIS issued a commercial general liability policy to Red Hook (the “AEGIS Policy”). Id. The AEGIS Policy provided liability limits of $2,000,000.00 per occurrence, subject to a $50,000.00 deductible. Defs.’ St. 21. Red Hook paid an annual premium of $2,000,000.00 with 25 percent earned at inception. Id. 23. The AEGIS Policy designated New York as the choice of law forum. Stip. 21. In order to pay the $2,000,000.00 premium, Red Hook sought and obtained a loan from Plaintiff, pursuant to two premium finance agreements which were executed between Red Hook and Plaintiff on October 18, 2016 and March 27, 2017 respectively. Id. 22. Pursuant to these agreements, Plaintiff paid $2,548,200.00 to Defendants on behalf of Red Hook. Id. Red Hook ceased operations during the term of the AEGIS Policy and defaulted on repayment of the premiums owed to Plaintiff.2 Id.
