Carter Lincoln-Mercury, Inc., Leasing Division, Plaintiff-Respondent v. Emar Group, Inc., Defendant-Appellant, and…

Summary

The Supreme Court of New Jersey affirmed the Appellate Division, holding that an insurance broker owes a duty of reasonable care—including investigation of an insurer's financial stability—to loss‑payees such as Carter Lincoln when procuring insurance, and that breach of that duty can give rise to liability. The decision also notes that the duty derives from the broker's duty to the insured and is limited to reasonable inquiry and disclosure.