TIG INSURANCE COMPANY v. << (1997)

Supreme Court, Appellate Division, First Department, New York.

TIG INSURANCE COMPANY, Plaintiff, v.
KREGER TRUCK RENTING CO., INC., et al., Defendants-Respondents/Third-Party Plaintiffs-Respondents, v. MMZ ASSOCIATES, INC., et al., Third-Party Defendants-Appellants.

Decided: October 30, 1997

Before SULLIVAN, J.P., and MILONAS, WALLACH, WILLIAMS and COLABELLA, JJ.

Michael F. Grossman and Doron Zanani, for Defendants-Respondents/Third-Party Plaintiffs-Respondents. Cristine Andreoli, for Third-Party Defendants-Appellants.

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 defendants 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.

MEMORANDUM DECISION.

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