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Insurer has no duty to cover claim after agent pocketed premiums

The insured paid their property insurance premium directly to their insurance agent who failed to deliver the payment to the insurer.

American Reliable denied the Lanc claim, stating that the policy had been canceled because the premium was not paid when the renewal time arrived. (Photo: Shutterstock) American Reliable denied the Lancaster’s claim, stating that the policy had been canceled because the premium was not paid when the renewal time arrived. (Photo: Shutterstock)

The Georgia Court of Appeals recently reversed a lower court’s ruling and dismissed a lawsuit filed by insureds seeking $200,000 in claims for a policy canceled when the insureds’ agent was arrested for pocketing their premiums.

Homeowners Charles and Wanda Lancaster say that when it came time to renew their farm owner’s policy with American Reliable Insurance Co. in December 2014, they made premium payments directly to their insurance agent, Macie Anedra Yawn, who was the sole proprietor of the Charles Robinson Insurance Agency in Georgia.

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