MVA Attorneys co-author article: Insurance contours clarified: agency relationships in premium financing
Moore & Van Allen (MVA) Litigation Member Fielding Huseth, and Litigation Associates Harley Payne and Kelsey Rector co-author the article titled, “Insurance contours clarified: agency relationships in premium financing” which was published by Reuters and Westlaw Today on April 8.
The New Jersey Superior Court recently dismissed a premium finance lender’s claims that several insurance companies were liable for the acts of their independent insurance agents. The premium finance lender purportedly lost millions because the agents used fake insurance policies to fraudulently obtain loans to fund their “lavish lifestyles.”
The article discusses how the court’s decision – and the logical arguments underpinning the decision – are a boon to insurance companies that deal with premium finance lenders. An insurance company should not face liability for its independent insurance agent’s rogue acts in defrauding a premium finance lender. MVA represented one of the insurance companies in the case and led the briefing and argument on the motion to dismiss.
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