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FRYAR v. EMPLOYERS INS. OF WAUSAU

Nos. 12459, 12471.

607 P.2d 615 (1980)

94 N.M. 77

Lem FRYAR and Danny L. Fryar, d/b/a Fryar Logging Company, Plaintiffs-Appellees, v. EMPLOYERS INSURANCE OF WAUSAU and Marsh & McLennan, Inc., Defendants-Appellants, (two cases).

Supreme Court of New Mexico.

March 6, 1980.

Attorney(s) appearing for the Case

Rodey, Dickason, Sloan, Akin & Robb, Jonathan W. Hewes, Stanley N. Hatch, Albuquerque, for Employers Insurance of Wausau, appellant.

Johnson & Lanphere, D. James Sorenson, Albuquerque, for Marsh & McLennan, Inc., appellant.

Gallagher, Casados & Martin, J.E. Casados, Albuquerque, for appellees.

OPINION

SOSA, Chief Justice.

The general issues presented in this case are (1) whether the insurance broker had authority to modify an insurance contract for an insurance company, and (2) if he did, whether the insureds reasonably relied to their detriment upon representations by the broker. We hold that under the facts of this case the broker was an agent of the insurance company and legally bound the company to...

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