Insurance Agent Errors & Omissions, Quebedeaux v. Ellsworth and Babcock, EDLA.

Mr. Le Clercq defended an insurance broker in an errors & omissions case when beneficiaries sued an insurance company and its broker for $200,000 life insurance benefits, additional contract and tort damages, attorney fees, and penalties. There was a 20 year relationship between the company and the broker for all group coverages. The company cross-claimed against the broker as well. The employee, “not actively-at-work,” eventually died between coverage changes from Lafayette Group Life Insurance to Madison Group Life Insurance. All carriers denied coverage and all blamed the broker in emails, stating the decedent was too old for “waiver of premium benefit,” the agent failed to secure 18 month “leave of absence" benefits, and the agent failed to advise the company/decedent to exercise “conversion” rights. However, discovery revealed several key errors by Lafayette and supported a novel policy interpretation against Lafayette. The case settled on December 18, 2010, for $120,000 and only $20,000 from Lexington’s insureds.
Quebedeaux v. Ellsworth and Babcock, EDLA.