Members who call the PIWA Hotline will receive free general guidance from renowned insurance law expert Milton Thurm, Esq., who is licensed to practice law in New York state, Floida and other jurisdictions. Thurm has decades of experience representing brokers in general, and wholesale/excess and surplus lines brokers in particular.
June 23, 2016
Score one for the good guys!
No liability found against the wholesale broker with respect to obtaining coverage for a contractor because an "indication" is not a "quote"
In this interesting case decided in April 2016, the proposed insured, DeFoe, was a contractor who did a lot of work for public entities like the NY State Department of Transportation, the NYS Thruway Authority and the Port Authority of NY and NJ.
April 29, 2016
Hot hints from the hotline
A summary of some recent articles and cases of interest to wholesale brokers
We haven't seen many recent decisions dealing with agents and brokers, and specifically wholesale or excess line brokers, but there were several decisions of interest worthy of comment.
Feb. 8, 2016
The "additional insured" endorsement may provide broader coverage than the insurer intended
Not too far back, in the course of our discussion about Certificates of Insurance and the ACORD 855 Addendum, we touched on the nature of the coverage provided to the Additional Insured (AI) under an Additional Insured endorsement to a CGL policy. As it was most commonly understood, the owner and/or the general contractor who was an AI, was covered under the policy issued to the named insured (usually a subcontractor) for the named insured's "acts or omissions." In other words, if the owner or general contractor was sued as a result of the negligence of the subcontractor, the subcontractor's policy afforded indemnity and defense costs coverage to the AI-owner and/or general contractor.
Oct. 7, 2015
Will you or your client be left standing naked when the sun sets?
Hidden dangers lurking in the medical malpractice marketplace
We know that every broker, no matter the nature of his/her business or type of license, has the responsibility to exercise due care in placing and providing the proper coverage for the client. This duty includes placing the risk with an insurer that is solvent and will stay solvent until the last claim covered under the policy is paid. See, Jamaica Bay Riding Academy v. Slack, 204 AD2d 398. However, the current state of the medical malpractice market in New York has cast a long shadow on the broker's duty of due care and has placed many brokers between a rock and a hard place.
March 24, 2015
Trials and traps in premium finance agreements
Several recent Hotline inquiries have brought to the fore some misunderstandings of premium finance arrangements and how the wholesale broker may be at risk if care and awareness are not exercised. The most frequent issue arises in the context of the premium finance company (PFC) exercising its right to cancel a financed policy in the event the insured defaults in making an installment payment.
Sept. 30, 2014
Account executive for wholesale broker-intermediary personally responsible for his activities performed on behalf of his employer and the E&O ramifications
Generally speaking, an employee acting in the course and scope of his employment will not have personal liability for activities performed on behalf of his employer. In a recent case, however (decided on August 4, 2014), an employee of a wholesale broker-intermediary (wholesaler) asked the court to dismiss claims brought against him in his individual capacity by a retail broker (retailer) arising out of the employee's conduct.