Congratulations to Kerri Anderson who recently won a motion to dismiss! In a case involving claims against an insurer and a long-time agent, the court denied the agent’s motion to dismiss a negligence claim. The case arose when the plaintiffs, victims of a cybercrime scheme, discovered their policy limit for wire transfer fraud had been reduced dramatically by an unnoticed endorsement that had been added to the policy at renewal. The agent argued they had no duty to advise the insured of the change, claiming no “special relationship” existed. However, the court ruled that the negligence claim was based on the agent’s duty to act with reasonable care in procuring the requested coverage, which does not require a special relationship. The lawsuit highlights the importance of vigilance in policy renewals and endorsements.
