A New Orleans-based auto insurance provider is suing an insurance firm claiming it failed to live up to the terms of an agreement to sell insurance.
American Insurance Co. filed a lawsuit Aug. 21 in the U.S. District Court Eastern District of Louisiana against Robert Moreno Sr., doing business as Robert Moreno Insurance Services in California, alleging that Moreno did not honor the terms of a managing general agency agreement.
In the agreement, which was signed on June 11, 2013, the lawsuit claims, Moreno was supposed to act as American Insurance Co.’s general managing agent in California and perform duties that include producing, appointing and supervising agents and brokers, underwrite, and handle insurance claims in connection with American Insurance Co.’s automobile insurance business. Moreno allegedly broke that agreement, the lawsuit claims, according to the findings of California Insurance Commission’s May 28 Rating and Underwriting Examination Report. The report found that Moreno failed to comply with insurance regulations and requirements, such as failing to follow rate filings, miscalculating mileage and premiums, erring in vehicle ratings and more.
American Insurance Co. asking to direct the court to order Moreno to join it in submitting its dispute to arbitration in Louisiana, in accordance with the terms of their managing general agency agreement and also award it the costs of the lawsuit and any other further relief the court considers proper.
American Insurance Co. is represented by New Orleans-based attorney Kevin R. Tully and Terry C. Gay of Christovich & Kearney LLP.
U.S. District Court Eastern District of Louisiana case number 2:15-cv-03696-MLCF-KWR