Intermediary Must Remit $4 Million in Premiums to Insurer, 2nd Circuit Affirms

NEW YORK - An insurer did not breach a broker services agreement by ending its relationship with Guy Carpenter & Company Inc. before the expiration of its three-year term because Florida law allows for early termination of such agreements, a federal appellate court has ruled. Royal Palm Insurance Co. v. Guy Carpenter & Company Inc., No. 10-2814 (2nd Cir.).

On May 27, the 2nd Circuit U.S. Court of Appeals affirmed a trial court order requiring Guy Carpenter to remit more than $4 million in its share of premiums to Royal Palm Insurance Co.

In 2006, Royal Palm started its insurance …