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McFARLING v. DEMCO, INC.

No. 46750.

546 P.2d 625 (1976)

Tom I. McFARLING, Statutory Liquidator for the State Board of Insurance for the State of Texas, Receiver, Appellant, v. DEMCO, INC., and C. L. Frates and Company, Appellees.

Supreme Court of Oklahoma.

February 10, 1976.

Attorney(s) appearing for the Case

W. R. Wallace, Jr., Rainey, Welch, Wallace, Ross & Cooper, Oklahoma City, for appellant.

Kent F. Frates, Ellis, Frates & Shotts, Oklahoma City, for appellee.

IRWIN, Justice:

In June of 1969, C.L. Frates & Company (Frates) entered into an "Agency Agreement" (the agreement), with Liberty Universal Insurance Company (Liberty). Pursuant to the agreement, Frates was authorized to solicit for and place with Liberty policies of insurance. Frates sold to Demco, Inc. (Demco) several policies of insurance which Frates placed with Liberty. Before Frates remitted to Liberty premiums received...

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