Suitability and Agency
In Smith v. National Western Life Insurance Company, Civil No. 4:08-CV-2119 (M.D. Pa. Mar. 22, 2010), an interesting case involving suitability and agency questions, a magistrate judge recommended granting summary judgment to an insurer. The magistrate had described the case in the following ways:
This case does not involve a claim that the policy sold to the plaintiff contained deceptive provisions or misrepresentations. The deception claim(s) here are as to the suitability of this policy for this plaintiff.
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This is a case involving the application of agency principles in a context where a broker having the authority to bind an insurance company sells the product of the insurance company to a consumer for whom the product was not suitable.