Gallinger v. Vaaler Insurance, Inc.

ROSS, Senior Circuit Judge.

Appellant Great Global Assurance Company of Phoenix, Arizona, was the fronting agent for North Star Hospital Mutual Assurance, Ltd. (“NSHMA”), an off-shore insurance company organized under the laws of Bermuda to provide hospitals with insurance or reinsurance against liability due to professional or business negligence1.

In the early 1980s, North Star contacted Harvey Hanson, president of the North Dakota Hospital Association, in an attempt to procure policy subscriptions. Hanson, in turn, contacted David Vaaler for assistance in the marketing of the hospital…