I don't know how many hundreds of thousands of insuranceprofessionals there are in the U.S., but I am constantly surprisedat how small the insurance world really is. For example, severalyears ago I was on my way from New York to Atlantic City on a coldrainy night. Approaching the bridge that goes on from Staten Islandto New Jersey my car stalled and wouldn't start. I put on myflashing emergency lights, and shortly somebody stopped and askedif he could help. It was the son of a good insurance friend ofmine. Well, another example of the small world of insurance hasjust occurred.

Barry Zalma wrote a terrific article for this site titled“Don't bet the farm.” The essence ofthis case is that the plaintiff, Scruggs, replanted seeds that wereweed resistant and patented by the Monsanto Chemical Company. Thepractice of replanting seeds is an age-old practice, used byfarmers who harvest their crops and save some seeds to be replantedthe following growing season. There's nothing wrong with thepractice except that these seeds were patented by Monsanto, andfarmers who purchased the seeds were explicitly directed not toreplant them.

Monsanto sued and the Mississippi Supreme Court eventually foundthat Scruggs' actions were both intentional and illegal, andtherefore uninsurable. The court also opined that the producer andthe agency had some duty to recognize Scruggs' need for patentinfringement insurance. They failed to inform Scruggs that heneeded it, but they couldn't be held liable for that omission,according to the court. I don't think anybody will be surprisedthat Scruggs then sued the insurance agent and agency.