Lynch v. First Colony Life Insurance

As a third-party plaintiff, First Colony Life Insurance Company (First Colony), brought this action to recover from third-party defendant, Underwriters Service Agency N.W., Inc. (USA), damages resulting from USA’s alleged breach of duties as an agent for First Colony. USA appeals the denial of its motions for directed verdict. We affirm.

In October, 1981, Florine Johnson contacted Wilson for the purpose of obtaining life insurance. Wilson was an insurance broker who, through USA, sold policies written by First Colony and others. Wilson submitted Johnson’s application for a $300,000 policy,…