New Podcasts from Barry Zalma
Zalma on Insurance Podcast Now Available
Available at PocketCasts: https://pca.st/ujampbxm; RadioPublic: https://radiopublic.com/zalma-on-insurance-Wel2lZ; Google Podcasts app. You’ll be able to find it at this link, and Breaker: https://www.breaker.audio/zalma-on-insurance
Surplus Line Broker Not an Insurer
After her house burned to the ground and her insurer rescinded the policy Suzan E. Taylor sued the insurer and the surplus line broker who obtained insurance for her from certain underwriters at Lloyd’s, London. The broker moved to dismiss Taylor’s action in Hiscox Dedicated Corporate Member Limited v. Suzan E. Taylor v. The Society Of Lloyd’s, The Corporation At Lloyd’s, and Burns & Wilcox, Ltd., NO. 6:18-CV-06100, United States District Court Western District Of Arkansas Hot Springs Division (April 20, 2020)
Lloyd’s Policy No. VSRD634943 (the Policy), provided fire insurance coverage for the high value home owned by Suzan E. Taylor, in Garland County, Arkansas. Taylor purchased fire insurance coverage from Certain Underwriters at Lloyd’s of London (the Insurer). Under the terms of the Policy, the dwelling was insured for $2.6 million and the personal property was insured for $1.3 million. Hiscox Dedicated Corporate Member Limited (“Hiscox”) is the majority underwriter of Lloyd’s Syndicate #33, the only syndicate subscribed to the Policy.
An insurance broker is a person or entity that transacts insurance with but not on behalf of an insurer. They are not insurers. A Surplus Line broker is an intermediary between the person seeking insurance, that person’s agent, and the insurer. Under Surplus Line law the broker can provide a policy to the insured but may not be considered an insurer. It was overkill on the part of the insured to sue the broker when the policy, in clear and unambiguous language, explained Burns and Wilcox was not an insurer and liable for any claims.
The Modern Market at Lloyd’s
The History of Insurance from Sumeria to the Inception of Lloyd’s
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