Miss. Insurers Have No Duty To Advise, 5th Circ. Rules

Law360, New York (May 1, 2012, 3:09 PM EDT) -- The Fifth Circuit on Monday said a Mississippi insurer has no duty to advise customers on insurance purchases and can't be sued for negligent misrepresentation, ruling on a case over Liberty Mutual Fire Insurance Co. flood insurance related to Hurricane Katrina.

The negligent misrepresentation claim was brought by customer John Grissom against Liberty Mutual for not informing him that he could have bought a better flood insurance policy than the one he did. But the Fifth Circuit agreed with Liberty Mutual that the claim can't be...
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