Rode v. Allianz Life Ins. Co. CA4/1
McDowell Hetherington, Thomas F.A. Hetherington, Andrew R. Kasner and Jodi Swick for Defendant and Respondent PHL Variable Insurance Company.
This is an appeal from a judgment of dismissal after the trial court sustained defendant insurance companies' demurrers to a third amended complaint (complaint) without leave to amend. The defendant insurance companies sold their insurance products using an insurance agent who engaged in a fraudulent scheme—through two companies that were unrelated to defendants—and the scheme caused plaintiffs to collectively lose millions of dollars. Plaintiffs contend defendants are vicariously liable for the insurance agent's fraud based on various theories, all of which we reject. We affirm the judgment on the grounds that the insurance agent was acting outside the scope of his agency, the defendant insurance companies owed no duty to plaintiffs under the circumstances presented, plaintiffs have failed to establish any legal basis to hold the
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