Opinion ID: 2049700
Heading Depth: 1
Heading Rank: 1

Heading: the agency of warren nichols

Text: Atlantic argues that the trial justice was in error in finding as a matter of fact that Nichols was the agent of Atlantic Mutual Insurance Company in determining the appropriate amount of insurance required for the boat policy. We have generally regarded the question of agency as an issue of fact to be submitted to the trier of fact under appropriate applicable legal principles. See Brimbau v. Ausdale Equipment Rental Corp., R.I., 440 A.2d 1292, 1295-96 (1982). In that case we recognized that a person might simultaneously represent two independent principals. Id., 440 A.2d at 1296. Consequently, the question of agency is a mixed question of law and fact. See DeNardo v. Fairmount Foundries Cranston, Inc., 121 R.I. 440, 445-49, 399 A.2d 1229, 1232-34 (1979). This court has held that an insurance agent who represented several insurance companies and had freedom of choice in determining with which company he would place an automobile fire-insurance-policy was the agent of the insured and not of the insurer. Affleck v. Kean, 50 R.I. 405, 407, 148 A. 324, 325 (1929). This holding was in accordance with the general principle: If an agent representing several companies is applied to for insurance to a certain amount on property, the agent to select the companies and distribute the risk, he is insured's agent as to distributing the risk. 3 Couch, Cyclopedia of Insurance Law § 25.111 at 424 (2d ed. 1960). In the case at bar the facts are essentially undisputed in respect to Nichols's role. He had advised the Mongillo family, including Alice's physician husband, for many years on home, malpractice, and business coverage, as well as on other related matters requiring insurance expertise. It was his decision as adviser to the Mongillo family to obtain the umbrella policy through the Cruff Agency from Aetna. It was his decision to procure underlying insurance on the boat from Atlantic, as it was his decision to obtain the homeowner's policy initially from Union. There is not a shred of evidence that Atlantic was in the business of advising the Mongillo family or others concerning the distribution of risks among various insurance carriers or the appropriate underlying policy of insurance in order to meet the requirements of a scope, or umbrella, policy. Consequently, on this record we are of the opinion that as a matter of law only one conclusion is possible in respect to Nichols's agency. That conclusion, in accordance with the general principles enunciated in Affleck v. Kean, supra , is that in his capacity as adviser, distributing the risk and determining the appropriate amount of coverage to obtain from any of the companies among whom the risk might be distributed, Nichols was acting as agent of the Mongillos rather than of any of the carriers. Once he decided to issue a policy, he was, of course, Atlantic's authorized agent in issuing the policy for the amount stated, but not in the initial determination of fixing that amount. Consequently, we are of the opinion that the trial justice erred in his resolution of the mixed question of law and fact in holding that Nichols was the agent of Atlantic when he decided upon the appropriate underlying insurance needs of the Mongillos.