Old Southern Life Insurance Co. v. Alabama Insurance Department

I respectfully disagree with the majority opinion. It appears to me to be based upon the assumption that Old Southern’s loss or *852liability in this instance is similar to that which would arise from a claim by Riddle under his insurance contract. I can find no basis for treating the liability in this manner.

Old Southern’s liability to Riddle did not arise under the provisions of the insurance policy it sold to him. It arose solely from Riddle’s suit against Old Southern for misrepresentation. This suit was not even filed until October 1983, several months after the date of the subject financial…