Celtic Life Insurance Co. v. Coats

I agree with the result in this case and join in Parts I and IV of Justice Spector’s opinion, but write separately to note that the mere authority of an agent to explain the terms of a policy does not render an insurer liable for all of that agent’s representations. Several states have limited the insurer’s liability to interpretations of the policy that are plausible or not patently absurd. See Mutual Benefits Life Ins. Co. v. Bailey, 55 Del. 215, 190 A.2d 757 (1963) (noting that an insured may rely upon a plausible interpretation by an agent); Flamme v. Wolf Ins. Co., 239 Neb. 465, 476…