Claims Against Insurance Broker Dismissed from Superstorm Sandy Coverage Action

NEW YORK — A broker that sold flood insurance to a commercial property owner prior to the arrival of Superstorm Sandy cannot be held liable for an insurer’s decision to deny a claim for damage that occurred before the policy actually went into effect, a federal judge in New York has ruled.

Granting a motion to dismiss Fairmont Insurance Brokers Ltd. from the case, Judge Arthur D. Spatt of the U.S. District Court for the Eastern Distrtict of New York said Feb. 11 that the broker’s alleged actions played no role in delaying the effective date of the policy or …