TIG Insurance v. Kreger Truck Renting Co.

Order, Supreme Court, New York County (Stephen Crane, J.), entered on or about September 9, 1996, which, in an action by an insurer to recover premiums allegedly due under a commercial automobile liability policy, denied third-party defendant insurance brokers’ motion to dismiss the third-party complaint for failure to state a cause of action, unanimously affirmed, with costs.

We agree with the IAS Court that the insureds’ third-party complaint, liberally construed, states a cause of action for fraud in alleging that the brokers induced the insureds to cancel the insurance they already had in order to take out insurance with plaintiff for a quoted premium; that although they paid the premium, plaintiff canceled the policy, claiming additional premiums above the quote were due; and that the insureds incurred losses as a result. Concur—Sullivan, J. P., Milonas, Wallach, Williams and Colabella, JJ.