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Insurance Business Question?
Havensure, LLC, an insurance broker, approached York International to determine whether it could provide insurance to York at a better rate than it currently was paying. York allowed Havensure to study its policies. Havensure realized that Prudential, an insurance provider for York, had a hidden broker fee in its premium that it used to pay the broker universal life resources (ULR) that provided the Prudential policy for York. Havensure told York that it could provide insurance at a lower price, so York had Havensure send requests for proposals to various insurance companies. To keep York’s business, Prudential offered to match the lowest rate quoted, but Prudential told York that it would have to continue to buy the policy through the broker ULR, and not through Havensure. York agreed. Havensure then sued Prudential for wrongful interference with a business relationship (see Chapter 4). The trial court held for Prudential. Havensure appealed. The appeals court held that what Prudential did, by having a hidden fee for a broker, violated its ethical code and may have violated New York insurance law, but Havensure still had no case. Does it make sense that a firm violating its own rules, as well as possibly violating the law, has no obligation for the loss it may have imposed on another firm that is trying to compete for business?3 years ago - 1 answers
You can't be held liable to someone else, for breaking your own rules. Case and Statute laws apply, not your own internal "rules".