b'

Surplus Line Broker Not an Insurer

After her house burned to the ground and her insurer rescinded the  policy Suzan E. Taylor sued the insurer and the surplus line broker who  obtained insurance for her from certain underwriters at Lloyd\\u2019s, London.  The broker moved to dismiss Taylor\\u2019s action in Hiscox Dedicated  Corporate Member Limited v. Suzan E. Taylor  v.  The Society Of Lloyd\\u2019s,  The Corporation At Lloyd\\u2019s, and Burns & Wilcox, Ltd., NO. 6:18-CV-06100, United States District Court Western District Of Arkansas Hot Springs Division (April 20, 2020)

Introduction

Lloyd\\u2019s Policy No. VSRD634943 (the Policy), provided fire insurance  coverage for the high value home owned by Suzan E. Taylor, in Garland  County, Arkansas. Taylor purchased fire insurance coverage from Certain  Underwriters at Lloyd\\u2019s of London (the Insurer). Under the terms of the  Policy, the dwelling was insured for $2.6 million and the personal  property was insured for $1.3 million. Hiscox Dedicated Corporate Member  Limited (\\u201cHiscox\\u201d) is the majority underwriter of Lloyd\\u2019s Syndicate  #33, the only syndicate subscribed to the Policy.

ZALMA OPINION

An insurance broker is a person or entity that transacts insurance  with but not on behalf of an insurer. They are not insurers. A Surplus  Line broker is an intermediary between the person seeking insurance,  that person\\u2019s agent, and the insurer. Under Surplus Line law the broker  can provide a policy to the insured but may not be considered an  insurer. It was overkill on the part of the insured to sue the broker  when the policy, in clear and unambiguous language, explained Burns and  Wilcox was not an insurer and liable for any claims.