Aetna Insurance Company v. Glens Falls Insurance Company, South Carolina Insurance Company, the London Agency, Inc.

DYER, Circuit Judge:

This appeal involves the existence vel non of an agency relationship between two reinsurers and an employee of the reinsured. The district court found that the employee was an agent of the rein-surers, 327 F.Supp. 11. We disagree and reverse.

On March 3, 1966, a tornado destroyed a television tower in Mississippi. The damage claim, in excess of $375,000, was paid by Aetna Insurance Company for which it was liable under a policy insuring the tower as an inland marine risk. Aetna in turn attempted to recover the portion of the claim that it had rein-sured with the South…