Relative of Deceased Insured Was Not Entitled to File Coverage Action Without Proof of Status as Insured

Great Lakes Reinsurance (U.K.) PLC v. Branam (3d DCA 2013)

The complex underlying facts can be summarized thusly: an insurance policy was issued to an individual and to a company for which the individual was the sole officer, director, and shareholder. The individual was then murdered in connection with a coverable loss under the policy and, as a result, one of the individual’s family members filed a claim under the policy, issuing three separate demands. The insurer declined to take a coverage position on these demands, each time requesting documentation to support the relative’s authority to act unilaterally on behalf of the insureds.

The relative filed a breach of contract action against the insurer, contending that the insurer effectively denied coverage by refusing to adjust the relative’s claims within ninety days of their submissions. The insurer moved for a directed verdict, which the trial court denied. The third district reversed, noting the lack of evidence to establish that the claims filed were valid or otherwise triggered the insurer’s contractual obligations. More specifically, the court emphasized that without the policy rights and without a trial court order authorizing the relative to file a claim unilaterally, the relative remained a stranger to the policy and lacked authority to file a claim thereunder.