COA rules in negligent application process case

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Addressing an issue today for the first time in state courts, the Indiana Court of Appeals had to determine whether a couple could sue their insurance broker for alleged negligence during the application process.

State courts have ruled on actions by an insured against an insurance company seeking recovery under a policy in cases such as Metropolitan Life v. Alterovitz, 214 Ind. 186, 196 14 N.E.2d 570, 574 (1938), but not in a case in which a person claims the insurance broker was negligent while filing out the application for insurance, leaving the person without any homeowner's insurance or specific coverage.

In Terence E. Brennan Jr. a/k/a Terry Brennan and Burt Insurance Co. v. Patricia and Harry Hall, No. 64A03-0811-CV-548, Terry Brennan and Burt Insurance Co. appealed the jury verdict finding them liable for negligently failing to procure insurance for the Halls.

Patricia Hall visited Brennan at his office and asked if he could get her homeowners insurance that specifically covered her dogs, including a Doberman pinscher; earthquakes; and a wood-burning stove. The insurance company Brennan selected for Hall doesn't provide insurance for Doberman pinschers; however, on the application, Brennan checked the "no" box to a question asking if the homeowner has any animals or exotic pets. Patricia, feeling rushed, signed the application without closely looking it over.

The Halls discovered they didn't have coverage for the dogs after their niece was bitten and they filed a claim with the insurance company, which was denied because the application didn't note they had a Doberman pinscher.

The Halls filed their own suit against Brennan and Burt Insurance, alleging negligence, breach of fiduciary duty, and constructive fraud by failing to acquire adequate insurance for the couple. The jury found Brennan and the company liable based on negligent failure to procure a policy. No damages were assessed because of a pending lawsuit between the Halls and the niece.

The 7th Circuit Court of Appeals addressed a similar issue in Roe v. Sewell, 128 F.3d 1098 (7th Cir. 1997), in which it limited the ruling in Alterovitz to cases by an insurance applicant directly against an insurance company. Alterovitz doesn't prohibit suits by an insurance applicant against an agent who may have been negligent in the application process, wrote Judge Michael Barnes.

"We hold that if an agent is negligent in assisting a client complete an insurance application, and such negligence leads to a basis for the insurance company to deny coverage to the applicant and/or revoke the policy, the applicant may seek damages from the agent, even if the applicant signed or ratified the application after having a chance to review it," he wrote.

The Court of Appeals affirmed the verdict.

The Court of Appeals did mention that Patricia may share some of the blame for the inaccurate application and as under Roe, it may be appropriate to assess her fault in accordance with the Comparative Fault Act. Brennan and Burt Insurance failed to make such an argument before the court, wrote Judge Barnes.


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  1. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  2. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  3. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  4. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  5. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.