Third-party beneficiaries to an insurance contract, as a matter of course, do not have contact with the insurer or the insurance agent obtaining the insurance for the named insured.
In Emerald Coast Finest Produce Co. v. Sunrise Fresh Produce an attempt was made by a person claiming to be a third-party beneficiary to collect more than the existing policy limit because of its claimed negligence of the insurance agent.
This case arose from a warehouse fire. Plaintiff Emerald Coast owned the building and leased it to defendant Sunrise, headquartered in Mississippi. The lease agreement required Sunrise to “provide and keep in force fire and extended coverage property damage insurance on the Premises equal to 100 percent of the replacement value of the building.” The building burned down. Emerald Coast claimed that the cost to repair or replace it was just more than $15 million, but the policy insuring the building provided $5 million in coverage.
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