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Michael A. KluthoBassford Remele, Minneapolis, MN

Member Achievement and Case News: Featured

A&B Claim Accrues When Policy is Issued

Tuesday, September 18, 2018   (2 Comments)
Posted by: Tom Jensen
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Insurance agency procured a real estate E&O policy for client that included a specific-entity-exclusion endorsement explaining that the policy does not apply to any claim made against the customer by a certain entity. Policy incepted May 12, 2010. That entity was sued and the insurer denied the claim based upon the exclusion. Customer sued agency on April 17, 2015 alleging failure to procure an appropriate policy. Ohio has a four year SOL. Customer argued the "delayed damages" rule of accrual applied, such that damage was incurred when insurer declined coverage in 2011, making the claim timely. In lGR Realty, Inc. v. Frank & London Ins. Agency, 2018 Ohio 334 (2018) the court ruled insurance agent A&B negligent procurement/misrepresentation claims accrue when the allegedly improper policy was issued. Thus the claim was barred by the SOL.  


Frederick J. Fisher J.D. says...
Posted Monday, October 29, 2018
How about damages ?? What if there are none--- yet - i.e., no loss yet denied... Can one sue for Declaratory Relief so that yeas later when a claim is made during the gap created it is automatically declared a liability for the Agent/Broker?
Ben A. Andrews says...
Posted Wednesday, September 19, 2018
Interesting Tom. Obviously the exact opposite of how courts in Florida and other states would rule, instead holding the E&O claim is not ripe until the coverage action has been finally "judicially determined," whatever that means.

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