The following case points out the danger to an agent's bank balance for using a telephonically placed application without the review and agreement of the prospective insured.
Plaintiffs Gloria and Glenda Salley (the Salleys), mother and daughter, successfully sued their insurance agent. The Salleys had constructed the foundation and frame of a home on their property. They then sought to obtain a builder's risk insurance policy. They met with Nasir Beshay, president of ABL Insurance Services Inc. (ABL), who obtained a policy through Assurance Company of America (Assurance).
After a fire damaged the property, Assurance denied the plaintiffs coverage because the policy did not cover existing structures. The Salleys successfully sued Beshay and ABL, who appealed the jury verdict and judgment against them based on a theory of negligence and breach of acceptable professional standards. A New Jersey appellate court in Glenda Salley and Gloria Salley v. Nasir A. Beshay and Abl Insurance Inc., No. A-1366-10T1, (N.J.Super.App.Div. 07/10/2012) resolved the dispute.
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