Barry Zalma, Esq., CFE, has practiced law in California for more than 40 years as an insurance coverage and claims handling lawyer. He now limits his practice to service as an insurance consultant and expert witness specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally, for insurers and policyholders.

Before the scheduled opening date in September 2006 for Cascades, a fitness club in Inver Grove Heights, Minn., Wayne Newton, a principal of Cascades, sought help in obtaining bonding and insurance for the club from his brother, appellant Nicholas Newton, the surety bond manager at Associated Insurance Agents Inc. (AIA). Nick Newton’s primarily sold surety bonds and was a licensed agent for property and casualty insurance, but that business made up about10 percent of his work.

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