January 16, 2003
Litigation partners Richard Mancino and Thomas Golden and associate Brett Wiggins publish an article in the January issue of The Metropolitan Corporate Counsel on an insurer’s obligation to warn unknown third parties that one of its agents has engaged in fraudulent activities.
Willkie litigation partners Richard Mancino and Thomas H. Golden and associate Brett E. Wiggins wrote an article for the January issue of The Metropolitan Corporate Counsel on an insurer’s obligation to warn unknown third parties that one of its agents has engaged in fraudulent activities. The article, “Agent Fraud: Who Must An Insurer Warn?,” examines an insurer’s duty to disclose to affected third parties negligent or fraudulent conduct (particularly binding policies beyond the scope of his authority) on the part of one its agents. The Willkie authors discuss the recent case General Star Indemnity Company v. Bank of America, N.A. and Platinum Indemnity Limited, in which the United States District Court for the Southern District of New York held that New York law placed no duty on an insurer to warn the insurance marketplace about fraudulent conduct of one if its former agents. The Willkie writers, who were counsel to General Star Indemnity Company in the litigation, point out that while an insurer encountering agent fraud does not typically need to “warn the world,” it would be a mistake to think that an insurer may never have an obligation to third parties. They emphasize that “An insurer must examine the totality of its relationship with relevant insureds and third parties when assessing its obligations.” Mr. Mancino and Mr. Golden are partners in the Litigation Department in Willkie’s New York office, specializing in corporate and commercial litigation.
