The court granted the insurer's motion for summary judgment, finding that the insured's broker was not an agent of the carrier. Maxum Indem. Co. v. Broken Spoke Bar & Grill, 2020 U.S. District. LEXIS 49736 (W.D. Ky. March 23, 2020).

    The insured argued that "insurance Agent Clark" assured him that coverage would extend to altercations or robberies at the insured's bar. Maxum Indemnity Company denied coverage and filed suit for a declaratory judgment. Maxum moved for summary judgment.

    The issue was whether Maxum was equitably estopped as a result of alleged representation of Agony Clark. Estoppel arose when the insured detrimentally relied on the acts or representations of the insurer that were inconsistent with the terms of the policy. When an insurance agent made affirmative misrepresentations about the coverage, and the insured relied upon those misrepresentations to their detriment, an insurer could be liable for any injury suffered by the insured. 

    The insured argued that Agent Clark made verbal assurances that the policy would cover the cost of any lawsuit and damages following an altercation at the bar under his policy with Maxum. These alleged statements made by Agent Clark were of no consequence unless he acted as an agent for Maxum. 

    Agent Clark acted as the insured's insurance broker regarding the application and placement of the Maxum policy. A broker was ordinarily employed by the person seeking insurance and was an agent of the insured, not the insurer. The insured sought insurance from a surplus lines carrier, so he needed to go through a licenses broker. Agent Clark was the surplus lines broker representing the insured. At no time was Agent Clark appointed to act on behalf of Maxum, nor was Agent Clark ever affiliated with Maxum in any capacity. The underwriting materials between the parties also explained the relationship. Finally, the insured had a twenty year relationship with Agent Clark. 

    Therefore, Agent Clark was an agent of the insured, not Maxum, and was acting on the insured's behalf throughout the application, underwriting and placement of the Maxum policy. Maxum's summary judgment motion was granted.