Insurance Agency Is Liable for ex-Employee's Fraud in Generating fake Comp Policy for PEO

A divided New York appellate court panel ruled that an insurance agency could be held liable for the acts of a former employee in providing a customer with a falsified workers' compensation insurance policy. Case: Regency Oaks Corp. v. Norman-Spencer McKernan, No. 496 CA 14-01911, 06/12/2015, published. Facts: The Regency Oaks Corp. is a professional employer organization. It contacted Norman-Spencer McKernan, an insurance agency, to procure workers' compensation coverage. A Norman-Spencer employee prepared a proposal for the coverage to be provided by Professional Insurance Manager...