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 both the insured and foreseeable loss‑payees. The broker’s failure to investigate and disclose the insurer’s insolvency breached that duty, making the broker liable for the loss‑payee’s damages.