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NAT'L PREM. BUDGET PLAN CORP. v. NAT'L FIRE INS.

97 N.J. Super. 149 (1967)

234 A.2d 683

NATIONAL PREMIUM BUDGET PLAN CORPORATION, A CORPORATION OF THE STATE OF MICHIGAN, PLAINTIFF, v. NATIONAL FIRE INSURANCE COMPANY OF HARTFORD, A CORPORATION OF THE STATE OF CONNECTICUT, LOUIS J. MARTONE, EDWIN M. ROTHBERG AND PRICE AGENCY A PARTNERSHIP COMPOSED OF LOUIS J. MARTONE AND EDWIN M. ROTHBERG AS COPARTNERS, DEFENDANTS.

Superior Court of New Jersey, Law Division.

Decided September 13, 1967.

Attorney(s) appearing for the Case

Messrs. Verling C. Enteman and Andrew S. Polito for plaintiff.

Mr. Gordon L. Kent for defendant National Fire Insurance Company of Hartford (Messrs. Budd, Larner, Kent & Gross, attorneys).

Mr. Victor R. King for defendant Edwin M. Rothberg.

STAMLER, J.S.C.

Is an insurance company liable to a finance company under theories of fraud and deceit or negligence for the acts of an insurance agent who submits fraudulent loan applications falsely evidencing the issuance of insurance policies and who thereafter forges verifications of their existence upon which the finance company relies when making loans to fictitious assureds, the proceeds being then converted by the insurance agent to his own use?

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