Opinion ID: 1130470
Heading Depth: 1
Heading Rank: 2

Heading: Beneficiary's Individual Action for Negligence

Text: In the case of Royal Neighbors of America v. Fortenberry, 214 Ala. 387, 107 So. 846 (1926), the Court held: [T]he right of action for failure to promptly issue, or negligence in the due issue of the policy or certificate, pursuant to the application, is ... not in the beneficiary named in the application. 214 Ala. at 390, 107 So. at 849. In Gillilan, supra, at 674, the Court wrote: Thus, Royal Neighbors of America is authority for the proposition that a beneficiary named in a pending insurance application does not have a right to maintain an action against an insurance company for negligently processing an insurance application. If the beneficiary has no right against an insurance company for negligently processing an insurance application, the beneficiary would have no such right against a third party employed by the insurance company to obtain information necessary for evaluation before the issuance of a policy, for negligence in the collection, assembly, transmission, or handling of such information.