Download PDF - Goodmans

Florida
Imagine Ins. Co. v. State of Florida ex rel. the Dep't of Financial Serv., 999 So. 2d
693 (Fla. 1st DCA 2008). Except as provided in sections 631.192 and 631.252, the
rights and liabilities of the insurer and its creditors, policyholders, stockholders,
members, and subscribers and all other persons interested in its estate shall,
unless otherwise directed by the court, be fixed as of the date on which the
order directing the liquidation of the insurer is filed in the office of the clerk of
the court which made the order, subject to the provisions of this chapter with
respect to the rights of claimants holding contingent claims. No offset shall be
allowed in favor of any person unless the claim of offset is fully mature, or, in
the case of a reinsurance agreement, the insurer's obligation is incurred, as of
the date on which the order directing the liquidation of the insurer is filed in the
office of the clerk of the court which made the order, and a claim of offset shall
not create a secured claim to any funds or property in the possession of the
person claiming offset.
Law Offices of David J. Stern, P.A. and David J. Stern v. Skor ReIns. Corp., 354 F.
Supp. 2d 1338 (S.D. Fla. 2005). Florida law holds that liability between an agent
and an undisclosed principal is alternative. 354 F. Supp. 2d at 1345.
Georgia Todd v. German‐American Ins. Co. of New York, 2 Ga. App. 789, 59 S.E. 94
(1907). The court held that an agent of the company may also act as an agent
of his customers in procuring new contracts of insurance with a solvent
company.
Illinois
Oklahoma
Pennsylvania
Ayh Holdings, Inc. v. Avreco, Inc., 357 Ill.App.3d 17, 826 N.E.2d 1111 (Ill. App. Ct.
2005). Where broker is on notice that insurance company is insolvent, broker
has a duty to notify client. An insurance producer may be liable for losses
sustained by insured where insurer fails to perform as promise, including if
insurer becomes insolvent.
Oklahoma Property & Cas. Ins. Guar. Assoc. v. Class Fire & Marine Ins. Co.,
963 P.2d 622 (Okla. Ct. App. 1998) cert. denied. The general managing agent
owed no duty to speak or assist in guaranty association’s investigation into a
“fronting arrangement” between an insolvent insurer and a second insurer.
Since the second insurer was potentially liable on policies issued by defunct
insurer, and its conduct did not induce the guaranty association to continue
paying claims, it could not be held liable to guaranty association on any
theory.
Al’s Café, Inc. v Sanders Ins. Agency, 2003 Pa. Super. 110, 820 A.2d 745 (Pa.
Super. Ct. 2003). Sanders, an agent, placed a liquor liability insurance policy for
the appellant with Pine, an out‐of‐state insurance company not licensed to do
business in Pennsylvania. Subsequently, Pine was placed in liquidation before
the appellant notified Sanders it had a covered claim. Since Pine was not
licensed in Pennsylvania, the Pennsylvania Property and Casualty Insurance
Guaranty Association (“PPCIGA”) was not under an obligation to defend the
appellant and the appellant had no coverage for liquor liability. The court
recognized a duty of insurance brokers and agents to “exercise the care that a
reasonably prudent businessman in the brokerage field would exercise under
similar circumstances and if the broker fails to exercise such care and if such
care is the direct cause of loss to his customer, then he is liable for such loss.”
Id., 820 A.2d at 750.
Brainard v. Foster, Civil Action No. 91‐5308‐5318, 1992 U.S. Dist. LEXIS 3196 (E.D.
Pa. 1992). The Pennsylvania District Court's Memorandum and Order dismissed