Omscolite Corp. v. Federal Insurance

Plaintiffs suffered destruction of the contents of a warehouse, resulting in a claimed loss of $670,801.85. Poyle, the mutual agent of Federal Insurance Company and Connecticut Fire Insurance Company, had placed for plaintiffs a $365,000 policy with Federal and a $200,000 policy with Connecticut. Both insurance companies paid the full amount of the policy coverage pursuant to written proofs of loss submitted by plaintiffs after approximately a month of negotiations.

Plaintiffs now sue to recover the difference between the coverage under the policies and their claimed loss. They allege that on…