On October 17, 1990, Alberta Minor applied to Steve Rogers, an agent for Allstate Insurance, for coverage for her home and contents at 6900 Derby Road. She listed the occupants of the home as two. No children were shown. The policy was subsequently issued and showed Alberta and her husband, Maurice, as the insureds. The evidence showed that, in 1987, Alberta's daughter, Barbara Robinson, had moved in with her. Maurice did not live at that address at that time.
Sometime prior to 1992, Alberta and her husband moved to another house owned by them. On December 3, 1992, burglars entered the home on Derby Road and some contents owned by Barbara Robinson were taken. Robinson filed a claim with Allstate for the loss of her property, and the claim was denied since she was not a named insured in the policy. Robinson and her parents, the named insureds, instituted this action. One of their contentions was that the agent, Rogers, had breached his contract to provide coverage for Robinson, or was negligent in failing to do so.
The trial court entered summary judgment in favor of Allstate and the agent and Robinson appealed--the named insureds having voluntarily dismissed their claim.
Robinson based her claim on a definition contained in the policy which stated that coverage was granted to "insured persons" and the definition for that phrase was "you and, if a resident of your household: (a) any relative . . . "
The court, on appeal, pointed out that Robinson was not a "resident" of her parents' household at the time of the burglary loss. As to her claim that the agent was negligent in failing to provide her with coverage, she relied upon her mother's testimony that Alberta had told the agent that the house located on Derby Road was occupied at that time by Alberta and her daughter. Barbara also said that she and her mother were talking to the agent and her mother had asked Barbara if she thought the policy provided enough coverage for Barbara's property. It was contended that the agent was on notice that Alberta's purpose in securing insurance was to provide coverage for Barbara's possessions.
The higher court said that the negligence of an agent in failing to procure insurance is ordinarily a question of fact and should have been submitted to a jury. Likewise, the jury had to decide whether any duty that Rogers owed Barbara (as a third-party beneficiary) was nullified by Alberta's failure to inform Allstate and the agent that she no longer occupied the property, as the policy may have required her to do.
The summary judgment entered in the trial court in favor of Allstate and the agent was sustained to the extent that it dismissed Barbara's claim as an insured under the policy, but was reversed as to the claim against Rogers and Allstate as his principal.
Minor et al.; Robinson, Appellant, v. Allstate Insurance Company,
Inc., et al.--No. 15423--(Discretionary appeal to Supreme Court
of Ohio was not allowed)--Court of Appeals of Ohio, Second District,
Montgomery County--May 10, 1996--675 North Eastern Reporter 2d
550.