Arbitration Award for Insurer Against Managing General Agent for Breach of Agency Agreement

Posted by on Aug 17, 2016 in news, news_latest | 0 comments

Bruce Smyth secured an award for client Great Divide Insurance Company in an arbitration against Monarch Management Corporation, a managing general agent for Great Divide under an agency agreement. Great Divide demanded arbitration because of the omission of an abuse and molestation exclusion in breach of the underwriting guidelines under which Monarch was authorized to issue policies in Great Divide’s name. After a policy was issued without the exclusion, Great Divide was forced to defend an insured in a sexual molestation case and ultimately settled the matter just before trial. After a four-day arbitration before a panel headed by a retired Judge of the California Court of Appeals, and the testimony of ten witnesses and three experts, Great Divide was awarded all of the costs of defense and settlement, plus prejudgment interest, totaling over $450,000.