California Insurance Broker Did Not Have to Advise Life Insurance Beneficiary How to Protect Her Interest
May 24, 2018 by Steven A. Meyerowitz
This story is reprinted with permission from FC&S Legal, an ALM digital resource for insurance coverage law professionals. Visit the website to subscribe.
An appellate court in California has ruled that there was “no legal basis” to find an insurance broker liable for failing to advise a beneficiary of a life insurance policy how to protect her interest under the policy.
The Case
In 1992, Judy Randle and her then-husband, Alan McConnell, asked Mark Hebson, the owner of the Hebson Insurance Agency, Inc., to obtain a policy insuring McConnell’s life. Hebson did so, obtaining a policy from Farmers New World Life Insurance Company with a $250,000 death benefit that named Randle as the sole beneficiary.
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