Agent made certain misrepresentations in insurance company's questionnaire, California court finds
In a recent case, the evidence did not support that a director, officer, or managing agent in the insurance company knew in advance about the insurance agent’s likelihood of committing misconduct, a California court said.
In Williams v. National Western Life Insurance Company, the plaintiff, following his wife’s death, contacted Victor Pantaleoni to revise a living trust. Pantaleoni sold a $100,000 annuity of National Western Life Insurance Company to the plaintiff.
The plaintiff, however, returned the annuity to the insurance company within the 30-day “free look” period. Pantaleoni then wrote a letter over the plaintiff’s signature so that the insurer would reissue a new annuity. The plaintiff cancelled the second annuity. The insurance company charged the plaintiff a surrender penalty worth $14,949.91, which led him to file a case.
The jury, finding the insurer liable for negligence and financial elder abuse, awarded the plaintiff damages, including punitive damages amounting to nearly $3 million. The insurance company appealed.
In its previous decision, the California Court of Appeal for the Third District reversed the judgment. It decided that Pantaleoni acted as an independent agent who sold annuities for numerous insurance companies and lacked the authority to bind the insurer.
The plaintiff asked the California Supreme Court to review the appeal court’s decision. The...
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