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BAEN v. FARMERS MUT. FIRE INS. CO.

723 A.2d 636 (1999)

318 N.J. Super. 260

Sandra BAEN, General Administratrix and Administratrix ad Prosequendum of the Estate of Charles W. Baen, Deceased, as Assignee of Mulchand P. Giyanani, Plaintiff, v. FARMERS MUTUAL FIRE INSURANCE COMPANY OF SALEM COUNTY, Defendant/Third-Party Plaintiff-Appellant, v. Cigna Property & Casualty Companies, Individually and d/b/a Indemnity Insurance Company of North America and the New Jersey Automobile Full Insurance Underwriting Association, Third-Party Defendants-Respondents.

Superior Court of New Jersey, Appellate Division.

Decided February 17, 1999.

Attorney(s) appearing for the Case

Frank G. Basile, for appellant (Basile & Testa, Vineland, attorneys; Mr. Basile and Diane Giordana, on the brief).

Timothy K. Saia, Livingston, for respondent, CIGNA Property & Casualty Companies, individually and d/b/a Indemnity Insurance Company of North America (Morgan, Melhuish, Monaghan, Arvidson, Abrutyn & Lisowski, attorneys; Henry G. Morgan, of counsel; Mr. Morgan and Mr. Saia, on the brief).

John P. Montemurro, Haddonfield, for respondent, New Jersey Automobile Full Insurance Underwriting Association (Tomlin, Clark, Hopkin & Montemurro, Attorneys; Mr. Montemurro, on the brief).

Before Judges WALLACE, NEWMAN and FALL.

The opinion of the court was delivered by FALL, J.S.C. (temporarily assigned).

In this appeal, we examine whether a primary insurance carrier's fiduciary duty to an excess insurance carrier continues once the excess carrier has disclaimed coverage to the insured. We hold that a primary insurance carrier's fiduciary duty to an excess insurance carrier is extinguished once the excess carrier has disclaimed coverage to its insured.

I

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