FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
`
`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`
`
`- against -
`
`
`
`Plaintiff,
`
`
`Index No.: 654746/2020
`
`
`
`ANSWER TO THIRD
`AMENDED COMPLAINT
`WITH COUNTERCLAIMS
`
`
`
`
`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`– – – – – – – – – – – – – – – – – – – – – – – – – – – – x
`ARCH INSURANCE COMPANY,
`:
`
`:
`
`:
`
`:
`
`:
`DOCNETWORK, INC. (f/k/a DOCNETWORK,
`:
`LLC, a/k/a CAMPDOCS), and CAMPASSURE,
`:
`LLC,
`:
`
`:
` Defendants.
`
`
`:
`– – – – – – – – – – – – – – – – – – – – – – – – – – – – x
`
`
`Defendant CampAssure, LLC, (“CampAssure” or “Defendant”), by its attorneys, Farrell
`
`Fritz, P.C., as and for its Answer with Counterclaims to Plaintiff Arch Insurance Company’s
`
`(“Arch” or “Plaintiff”) Third Amended Complaint (“Complaint”), dated March 15, 2024, alleges
`
`as follows:
`
`ANSWER TO INTRODUCTION
`
`Through this action, Arch seeks to be made whole for damages caused to it by the
`1.
`defendants’ rampant unauthorized mis-selling of Arch travel insurance policies relating to summer
`camps.
`
`RESPONSE:
`
`The allegations contained in paragraph “1” of the Complaint constitute a description of
`
`Plaintiff’s damages as to which no response is required; to the extent a response is required,
`
`Defendant denies the allegations.
`
`The defendants were agents of Arch who made available a travel insurance product
`2.
`that would provide coverage, subject to its terms and conditions, for cancelation of a child’s
`attendance at a summer camp. The defendants also offered a version of this policy called the
`Deluxe Plan, which included a “cancel for any reason” (or “CFAR”) provision that would provide
`coverage for up to 75% of the camper’s tuition or non-refundable deposit. Defendants offered the
`Arch policies through a web portal designed and operated by CampDoc. The portal and its
`information and marketing relating to the Arch policies were pre-approved by Arch, as required
`by the contracts between Arch and the defendants. In order to purchase an Arch policy, an
`individual camp family would need to access the CampDoc portal, make an individual decision to
`purchase the policy, and submit its payment for the policy.
`1
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`RESPONSE:
`
`Denies the allegations contained in paragraph “2” of the Complaint, except admits that
`
`under the RoamRight Agreement with CampAssure, dated November 9, 2017 (“CampAssure
`
`Agreement”), CampAssure was responsible for presenting potential opportunities to Arch, and
`
`respectfully refers the Court to the referenced document for its true and correct contents.
`
`In March 2020, at the onset of the COVID-19 pandemic, the defendants began to
`3.
`ramp up sales of Deluxe Plans with CFAR coverage, despite Arch’s instructions otherwise.
`Without obtaining Arch’s approval for modifications and additions to its marketing materials, the
`defendants actively worked to draw in new customers to purchase Deluxe Plans with CFAR
`coverage, including holding a webinar on March 18, 2020 to advise camp owners and camp
`families that CFAR coverage from Arch would be unavailable after March 20, 2020 and
`encouraging them to have as many families as possible sign up for that coverage prior to March
`21. As a result of the defendants’ unapproved marketing efforts, they signed up hundreds of
`policies resulting in substantial losses to Arch. In this action, Arch seeks relief compensating it for
`those losses caused by the defendants.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “3” of the Complaint.
`
`In addition, the defendants engaged in a unique breach of their obligations to Arch
`4.
`with respect to a camp located in Arkansas (“Camp Ozark”). The defendants worked with Camp
`Ozark to obtain Deluxe Plan CFAR policies in bulk for thousands of Camp Ozark camper families,
`which they expected to utilize as a form of business interruption insurance in light of the oncoming
`pandemic. The defendants designed a new web portal solely for Camp Ozark, which was not
`disclosed to or approved by Arch. Through this undisclosed portal, they allowed Camp Ozark to
`funnel thousands of Camp Ozark families to “opt in” to “free insurance” that Camp Ozark – rather
`than the families – paid for. Over the course of a week in March 2020, the defendants and Camp
`Ozark signed up more than 5,000 campers for Deluxe Plans. Camp Ozark sent more than $800,000
`in premiums to CampDoc.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “4” of the Complaint.
`
`When Arch learned of this improper and unauthorized scheme in early April 2020,
`5.
`it immediately informed Camp Ozark that the transactions would be reversed and required
`CampDoc to return all of the premiums to Camp Ozark.
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “5” of the Complaint.
`
`Camp Ozark subsequently sued Arch and defendant CampAssure in federal court
`6.
`in Texas. Camp Ozark alleged that it was misled by CampAssure in the purchase of the policies
`and sought damages for the tuition payments that it refunded to its camper families as well as for
`alleged violations of the Texas Insurance Code. After extensive litigation, Arch and Camp Ozark
`settled the Camp Ozark claims at the end of 2023. In this action, Arch seeks indemnity from both
`CampAssure and CampDoc for the settlement payment and relief for other damages caused by
`their conduct in connection with Camp Ozark.
`
`RESPONSE:
`
`The allegations contained in paragraph “6” of the Complaint constitute a description of
`
`Plaintiff’s claims as to which no response is required; to the extent a response is required,
`
`Defendant denies the allegations.
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`ANSWER TO PARTIES, JURISDICTION AND VENUE
`
`Plaintiff Arch is an insurance company organized under the laws of the State of
`7.
`Missouri with a principal place of business at Harborside 3, 210 Hudson Street, Suite 300, Jersey
`City, New Jersey 07311.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “7” of the Complaint.
`
`Defendant CampDoc is a corporation organized under the laws of the State of
`8.
`Michigan with a principal place of business in Ann Arbor, Michigan, and upon information and
`belief is authorized to do business in the State of New York.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “8” of the Complaint.
`
`Defendant CampAssure is a limited liability company organized under the laws of
`9.
`the State of Nebraska with a principal place of business in Omaha, Nebraska, and upon information
`and belief is authorized to do business in the State of New York.
`3
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`RESPONSE:
`
`Denies the allegations contained in paragraph “9” of the Complaint, except admits that
`
`CampAssure is a limited liability company organized and existing under the laws of the State of
`
`Nebraska with a principal place of business in Omaha, Nebraska.
`
`The Supreme Court of the State of New York, and specifically the Commercial
`10.
`Division of the Supreme Court, has jurisdiction over this matter as the parties have consented to
`resolve any legal disputes arising from the contracts at issue through the Supreme Court of the
`State of New York, and the amount in controversy exceeds $500,000.00.
`
`RESPONSE:
`
`The allegations contained in paragraph “10” of the Complaint constitute statements of law
`
`as to which no response is required. To the extent a response is required, the allegations are denied.
`
`Venue is proper in New York County as the parties have consented to resolve any
`11.
`legal disputes arising from the contracts at issue through the Supreme Court of the State of New
`York, County of New York.
`
`RESPONSE:
`
`The allegations contained in paragraph “11” of the Complaint constitute statements of law
`
`and venue as to which no response is required. To the extent a response is required, the allegations
`
`are denied.
`
`CampAssure Agreement
`
`
`ANSWER TO BACKGROUND FACTS
`
`Arch has been an admitted insurer in the State of New York since February 3, 2000,
`12.
`is approved to issue accident and health policies in the State, and its National Association of
`Insurance Commissioner (“NAIC”) number is 11150.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “12” of the Complaint.
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`RECEIVED NYSCEF: 04/05/2024
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`Arch entered into a RoamRight Broker Agreement with CampAssure on November
`13.
`9, 2017 (the “CampAssure Agreement”).
`
`RESPONSE:
`
`Admits the allegations contained in paragraph “13” of the Complaint.
`
`The CampAssure Agreement established CampAssure as the broker responsible
`14.
`with presenting Arch with opportunities to underwrite travel insurance policies, including camp
`protection policies. The customers of these policies would be families who were sending their
`children to various summer camps throughout the country.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “14” of the Complaint, except admits that
`
`under the CampAssure Agreement, CampAssure was responsible for presenting potential
`
`opportunities to Arch, and respectfully refers the Court to the referenced document for its true and
`
`correct contents.
`
`The CampAssure Agreement authorized CampAssure to participate in negotiating
`15.
`and consummating agreements between Arch and producers and travel retailers.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “15” of the Complaint, except admits that
`
`under the CampAssure Agreement, CampAssure was authorized to participate in the negotiation
`
`and consummation of the transaction between producers and travel retailers (“Prospects”) and
`
`Arch, and respectfully refers the Court to the referenced document for its true and correct contents.
`
`The CampAssure Agreement authorized CampAssure to develop training materials
`16.
`and conduct training regarding Arch’s policies.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “16” of the Complaint, except admits that
`
`CampAssure was authorized to develop training materials and conduct training for producers and
`
`travel retailers to solicit Arch’s policies, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`The CampAssure Agreement required CampAssure to ensure that producers and
`17.
`travel retailers obtained Arch’s written approval for all marketing and promotional materials that
`they might develop referencing Arch or its products prior to any use or distribution of those
`materials.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “17” of the Complaint, except admits that
`
`under the CampAssure Agreement, CampAssure was required to ensure that its Prospects obtain
`
`Arch’s prior written approval for all marketing and promotional materials that its Prospects might
`
`develop referencing Arch or its products, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampAssure Agreement provided that, as full compensation for those
`18.
`producers and travel retailers presented by CampAssure and accepted by Arch, CampAssure would
`receive commissions on the producers and travel retailers’ business submitted to and accepted by
`Arch.
`
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “18” of the Complaint, except admits that
`
`under the CampAssure Agreement, Arch agreed to pay CampAssure commissions on the
`
`Prospects’ business submitted to and accepted by Arch, and respectfully refers the Court to the
`
`referenced document for its true and correct contents.
`
`The CampAssure Agreement required CampAssure to ensure that producers and
`19.
`travel retailers maintain an inventory of marketing or promotional material used to promote Arch’s
`policies and required CampAssure to facilitate Arch’s request for the inventory of marketing or
`promotional material.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “19” of the Complaint, except admits that
`
`under the CampAssure Agreement, CampAssure was required to ensure that its Prospects maintain
`
`an inventory of each previously-approved marketing or promotional material used to promote
`
`
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`6
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`Arch’s policies, and respectfully refers the Court to the referenced document for its true and correct
`
`contents.
`
`requires
`that
`Indemnification
`The CampAssure Agreement contains an
`20.
`CampAssure to indemnify Arch against all losses “resulting from [CampAssure’s] act, error or
`omission, including but not limited to its sales practices[.]”
`
`RESPONSE:
`
`Admits the allegations in paragraph “20” of the Complaint quote the language in the
`
`CampAssure Agreement, and respectfully refers the Court to the referenced document for its true
`
`and correct contents.
`
`CampDoc Agreement
`
`Arch entered into a RoamRight Producer Agreement with CampDoc on November
`21.
`15, 2017 (the “CampDoc Agreement”).
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “21” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement broadly sets forth the terms and conditions under which
`22.
`CampDoc could place travel insurance policies underwritten by Arch.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “22” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement designated CampDoc as an authorized insurance
`23.
`producer and travel retailer.
`
`
`
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “23” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement authorized CampDoc to solicit travel insurance policies
`24.
`on behalf of Arch.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “24” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement authorized CampDoc to sell, offer, arrange, and
`25.
`disseminate travel insurance policies on behalf of Arch.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “25” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement authorized CampDoc to process applications for
`26.
`policies, collect premiums, and perform other activities on behalf of Arch.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “26” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`Under the CampDoc Agreement, CampDoc was required to collect and hold
`27.
`premiums in a fiduciary capacity until it timely submitted to Arch all premiums collected for
`policies.
`
`
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “27” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement required CampDoc to report to Arch all policies that
`28.
`CampDoc sold by submitting a monthly roster/manifest to Arch listing all such policies sold.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “28” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement authorized CampDoc to market, promote, and sell
`29.
`Arch’s travel insurance policies to potential customers, including camp protection policies.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “29” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement authorized CampDoc to develop marketing or
`30.
`promotional materials relating to the Arch policies and required CampDoc to maintain an
`inventory of all marketing or promotional material used to promote and sell the Arch policies.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “30” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement required that CampDoc obtain Arch’s prior written
`31.
`approval for all marketing or promotional materials referencing Arch or the Arch policies prior to
`any distribution.
`
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “31” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement provided that as full compensation, CampDoc received
`32.
`product specific commissions on the Arch policies that it sold.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “32” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`The CampDoc Agreement contains an Indemnification provision that requires
`33.
`CampDoc to indemnify Arch against all losses “resulting from [CampDoc’s] act, error or omission,
`including but not limited to its sales practices[.]”
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “33” of the Complaint, and respectfully refers the Court to the referenced
`
`document for its true and correct contents.
`
`CampDoc Deluxe Plan & Deluxe Policy
`
`One of Arch’s policies marketed, promoted, and sold through CampAssure and
`34.
`CampDoc was the CampDoc Deluxe Policy (the “Policy”), providing “cancellation for any reason”
`(“CFAR”) coverage which, true to its name, reimburses camper families if the campers are unable
`to attend summer camp for any reason, subject to its terms, conditions, limitations, and exclusions.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “34” of the Complaint, except admits that Arch’s CampDoc Deluxe policy
`
`provided “cancellation for any reason” coverage (“CFAR”), and respectfully refers the Court to
`
`the referenced document for its true and correct contents.
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
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`At all relevant times, CampDoc advertised itself on its website as “the leading
`35.
`electronic health record system for camps, offering online registration, travel and emergency
`medical protection, and CampGram one-way emails.”
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “35” of the Complaint.
`
`At all relevant times, CampDoc also advertised on its website that, “CampDoc
`36.
`offers travel and emergency medical protection, helping camp owners and directors to have
`comfort knowing campers and their families are protected!”
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “36” of the Complaint.
`
`At all relevant times, those camps that contracted with CampDoc to use its various
`37.
`web-based services could choose to offer the CampDoc travel and emergency medical protection
`plans to camper families, which CampDoc referred to as “Protection Plan[s].”
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “37” of the Complaint.
`
`At all relevant times, the CampDoc Protection Plans included what CampDoc
`38.
`referred to as the “Deluxe Plan,” which consisted of the Policy.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “38” of the Complaint.
`
`At all relevant times, CampDoc marketed and promoted the inclusion of the
`39.
`Policy’s CFAR coverage as the distinguishing feature of the “Deluxe Plan.”
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “39” of the Complaint.
`
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
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`CampDoc sold the Deluxe Plan/Policy directly to camper families via its website
`40.
`and the CampDoc platform (until it developed a separate portal solely for Camp Ozark, as
`discussed below).
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “40” of the Complaint.
`
`The registration for and purchase of the Deluxe Plan/Policy was completed via the
`41.
`CampDoc website and platform.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “41” of the Complaint.
`
`Upon information and belief and at all relevant times, the purchase process via
`42.
`CampDoc’s website and platform allowed camper families to choose to register for a Protection
`Plan offered by CampDoc, including the Deluxe Plan/Policy, enter the “insured amount” sought,
`and then make a payment for coverage purchased.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “42” of the Complaint.
`
`CampDoc provides the following visual demonstration of the Protection Plan
`43.
`purchase process on its website and CampDoc platform.
`
`
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
`
`Protection Plan - How to Purchase, DocNetwork Help Center, available at https://support.docnetwork.org/hc/en-
`us/articles/115001225530-Protection-Plan (last accessed Nov. 5, 2021)
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “38” of the Complaint.
`
`
`
`
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
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`COVID-19 & Improper Marketing/Sales of the Deluxe Plan/Policy
`
`
`As the COVID-19 pandemic continued to emerge in the United States in March
`44.
`2020, summer camps were determining whether they would be able to move forward with camp
`programs in view of local and state directives closing various facilities and restricting gatherings.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “44” of the Complaint.
`
`Upon information and belief, CampDoc and CampAssure began marketing,
`45.
`promoting, and selling the Policy as a form of business interruption coverage for camps, with the
`intent that the Policy would reimburse camper families if camps shut down for the summer or had
`a delayed opening.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “45” of the Complaint.
`
`By marketing, promoting, and selling the Policy as business interruption coverage,
`46.
`camps effectively could shift the burden of reimbursing camper families for tuition fees onto Arch
`and avoid their financial obligations to their campers.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “46” of the Complaint.
`
`The Policy was not designed or rated to be sold in this way and, if used in this
`47.
`improper manner, underwriting and issuing the Policy could be a significant financial liability for
`Arch, while simultaneously providing lucrative commissions for CampDoc and CampAssure, and
`financial security to the camps.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “47” of the Complaint.
`
`On March 8, 2020, Greg Johnson, Vice President of Business Development at Arch,
`48.
`advised Don Anderson, Owner of CampAssure, that there was a 95% chance that Arch would
`remove the CFAR coverage from the market in order to avoid the significant claims that would
`inundate Arch if the camps shut down due to COVID-19. Anderson responded by indicating to
`Arch that CampAssure would “pull all CFAR details” from the marketing and promotion of Arch’s
`program cancellation insurance policies.
`
`
`
`
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`14
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`14 of 44
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
`
`INDEX NO. 654746/2020
`
`RECEIVED NYSCEF: 04/05/2024
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “48” of the Complaint, except admits that
`
`Greg Johnson and Don Anderson discussed removing the CFAR coverage from the market after
`
`March 20, 2020.
`
`On March 12, 2020, Johnson informed Anderson that there would be a
`49.
`communication distributed later that day advising that Arch needs “CampDoc to pull down [the
`Policy] which has CFAR and not offer it during the next 90 days.”
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “49” of the Complaint, except admits that
`
`on March 12, 2020 CampAssure received a correspondence from Arch’s representative, and
`
`respectfully refers the Court to the referenced document for its true and correct contents.
`
`Also on March 12, 2020, Johnson advised Anderson and Michael Ambrose,
`50.
`Founder and CEO of CampDoc, that CFAR coverage should be offered and available to camper
`families only where the camp start date was more than ninety (90) days after the policy registration
`date, so that the CFAR coverage was not utilized in ways for which it was not rated or designed.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “50” of the Complaint, except admits that on
`
`March 12, 2020, CampAssure received correspondence from Arch’s representative, and
`
`respectfully refers the Court to the referenced correspondence for its true and correct contents.
`
`On March 18, 2020, Johnson advised Anderson that “CFAR gotta [sic] come down
`51.
`ASAP,” to which Anderson replied, “We’ll get it done. Just spoke with him [i.e., Michael
`Ambrose, Founder and CEO of CampDoc] briefly. Will confirm that it will be shut down.”
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “51” of the Complaint, except admits that on
`
`March 18, 2020, CampAssure received correspondence from Arch’s representative containing the
`
`quoted language, and respectfully refers the Court to the referenced correspondence for its true
`
`and correct contents.
`
`
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
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`INDEX NO. 654746/2020
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`RECEIVED NYSCEF: 04/05/2024
`
`Also on March 18, 2020, Johnson sent an email to Anderson and Ambrose with the
`52.
`following instructions: “As we touched on yesterday, we will be suspending CFAR sales as of
`3/20/2020 on [the Policy]. Like others in the industry, we are suspending our CFAR sales for the
`time being (don’t know for how long just yet) … unfortunately the current exposure is well beyond
`what this coverage was ever designed, built and rated for. Just for full clarity… no new enrollments
`should take place on [the Policy] as of 3/21/20.”
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “52” of the Complaint, except admits that on
`
`March 18, 2020, CampAssure received correspondence from Arch’s representative containing the
`
`quoted language, and respectfully refers the Court to the referenced correspondence for its true
`
`and correct contents.
`
`53. When Johnson told Anderson on March 18 that “CFAR gotta [sic] come down
`ASAP,” CampAssure and CampDoc represented to Arch that it would take a couple of days to
`make the necessary code changes to remove the Deluxe Plan from CampDoc’s website. Based on
`that representation, Arch agreed to give the defendants until March 20, 2020 to cease all sales. But
`during the days when those code changes were supposed to be made, rather than honoring Arch’s
`wishes that the Deluxe Plan sales should slow down and stop, CampAssure, and CampDoc ramped
`up their efforts to encourage as many camp families to purchase the coverage.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “53” of the Complaint, except admits that
`
`CampAssure exchanged emails with Arch representatives between March 18 and March 20, and
`
`respectfully refers the Court to the referenced correspondence for its true and correct contents.
`
`Upon information and belief, contrary to Johnson’s instructions, and Anderson’s
`54.
`assurances, CampDoc and CampAssure communicated the date and time upon which sales of the
`Policy would be suspended to camps and other potential customers and encouraged them to
`purchase the plan prior to that date.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “54” of the Complaint, except admits that
`
`the CFAR policy was suspended as of March 20, 2020, at 11:59 pm.
`
`For example, on March 18, 2020 – 10 days after Anderson of CampAssure assured
`55.
`Arch that CampAssure would “pull all CFAR details” from the marketing and promotion of Arch’s
`program cancellation insurance policies and the same day Johnson told Anderson that “CFAR
`16
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`16 of 44
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`FILED: NEW YORK COUNTY CLERK 04/05/2024 12:32 PM
`NYSCEF DOC. NO. 219
`
`INDEX NO. 654746/2020
`
`RECEIVED NYSCEF: 04/05/2024
`
`gotta [sic] come down ASAP” – Anderson appeared on a webinar hosted by CampDoc to market
`CFAR coverage to camp owners. During the webinar, Anderson told the listeners that CFAR
`coverage was never designed for the type of exposure presented by COVID-19. He also told the
`listeners that CampDoc and CampAssure were one of the last people offering such coverage and
`encouraging listeners to sign up before it became wholly unavailable.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “55” of the Complaint, except admits that
`
`Don Anderson (“Anderson”) spoke at a webinar hosted by CampDoc about insurance.
`
`56. Many of the camps that signed with CampDoc during this same period
`subsequently had extremely high claim-to-policy ratios.
`
`RESPONSE:
`
`Denies knowledge or information sufficient to form a belief as to the truth of the allegations
`
`contained in paragraph “56” of the Complaint.
`
`As a result of CampDoc and CampAssure’s improper actions and sales, Arch
`57.
`incurred substantial financial liabilities from, among other things, having to reimburse camper
`families who had their summer camp programs cancelled.
`
`RESPONSE:
`
`Denies the allegations contained in paragraph “57” of the Complaint.
`
`Allegations Specific