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Case Analysis: Indiana Appeals Court finds Insurer Cannot be Bound by Broker's Failure to Act

The brokers responsibility is to the insured and failing to fulfill that duty can exonerate the insurer and result in a serious and expensive claim to the broker for inaction.

By Barry Zalma | Updated on November 21, 2013

An insurance broker is a person who transacts insurance with, but not on behalf of, an insurer. An insurance agent transacts insurance with and on behalf of the insurer. In Pagel v. Ugly Monkey LLC, 49A02-1211-CT-903 (Ind. App. 09/10/2013), the Indiana Court of Appeals was asked to resolve a dispute between Century Surety Co. and its insured. The trial court had determined at summary judgment that insurance broker Dale Ueber, a/k/a Dale Uebersetzig, acted as the agent of Century when accepting notice of an occurrence and lawsuit from an insured, Camburad LLC, and that Century had a duty to defend Camburad and the nightclub Camburad operated.

Amber Pagel broke her ankle at an Indianapolis nightclub, The Ugly Monkey, on July 6, 2007. Doug Campbell, the registered agent for Camburad, was notified of the incident and promptly notified Ueber in Greenwood, Ind.

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