Calif. Court Won’t Impose Duty On Insurance Brokers

Law360, San Diego (February 29, 2012, 9:08 PM EST) -- A California appeals court on Tuesday affirmed that after an insurance broker procured an insurance policy for a developer on a construction project, it did not owe any duty to inform parties later added to that policy of the insurance company’s subsequent insolvency.

The three-judge panel declined to impose such a duty that it said would fundamentally change the relationship between brokers and their insureds, upholding the dismissal of Pacific Rim Mechanical Contractors Inc.’s cross-complaint against insurance broker Aon Risk Insurance Services West Inc. and a...
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