A federal appellate court on Thursday restored allegations of negligence against an Amwins Group Inc. entity in connection with property protection it provided to a property management company. Co., which accused in a 2018 U.S. District Court complaint that the total insurance values of Atlanta-based Triumph Housing Management LLCs were underreported by nearly $ 30 million, according to the first complaint in General Star Indemnity Co., Amwins Brokerage of Alabama, The Cone Co. against Triumph Housing Management, LLC.
General Star has since settled disputes and was not a party to the decision of the 11th American Circuit Court of Appeals in Atlanta.
Amwins Brokerage and the insurance company Cone Co., based in Montgomery, Ala., Were then accused by Triumph of negligent procurement to obtain a policy of scheduled coverage, where properties are specified individually on the policy, instead of the requested form coverage, which provides a total limit, and in order not to ensure that all structures were adequate
The District Court dismissed these allegations and denied Triumph's request to change its complaint. The case was resumed by a unanimous panel court with three judges. An insured's duty "to read his insurance and verify the terms does not require him to be clear-sighted," the decision said.
"Triumph claims that it did not receive a copy of the General Star insurance until after several claims had been made under it," the decision states. The central question "is whether the remaining facts alleged in Triumph's third party complaint support a conclusion that Triumph exercised ordinary diligence to find out the terms of the policy issued by General Star and verify that it provided the coverage that Triumph sought, "it states.
However, this issue was not considered by the district court, the decision said. [1
Amwin's and Triumph's lawyers did not respond to a request for comment.