STORY FROM: Superstorm Sandy Insurance Litigation
Broker’s Tort-Based Claims Against WYO Insurer Preempted, N.J. Federal Judge Rules
April 25, 2017
NEWARK, N.J. — Tort-based claims asserted by a broker against a Write Your Own flood insurer in a third-party complaint are preempted by the National Flood Insurance Act because they are grounded in claims handling, a New Jersey federal judge has ruled.
In an April 13 order, Judge Madeline Cox Arleo of the U.S. District Court for the District of New Jersey explained that the claims arise from “handling,” rather than “policy procurement,” because there was an existing relationship between the insurer, the broker, and the policyholder.
The judge further ruled that the broker lacks standing to assert a claim ...
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