Arrested for driving without auto insurance, Sandra Martin sued her insurance broker--Parsons DiSalvo Agency--claiming the company should have notified the Department of Motor Vehicles (DMV) that she had insurance in place. (When told that her policy had lapsed, Martin secured coverage, and the agent forwarded the premium to the insurance company.)
After the Westchester County Civil Court awarded the lady $449.40, the agency appealed.
Because New York state law requires insurance companies--rather than brokers--to advise the DMV of policy related changes, the Appellate Term, Second Department, thought that DiSalvo had done no wrong and ended up reversing and dismissing the case.
They brokered their way out of that.
To view a copy of the Appellate Term's decision, please use this link: Martin v. Parsons DiSalvo Agency, Inc.