Judge Harold Baer
ACE American renewed its policy to Maclaren Europe Ltd. Renewal was procured by New York retail insurance broker Sahni, who used New York wholesale broker (or sub-broker) Program Brokerage Corp. to negotiate and obtain the renewal from ACE. ACE delivered the renewal policy to Program, which delivered it to Sahni. Maclaren wired a renewal premium to Sahni’s account. Sahni never remitted premium to Program or ACE. ACE later mailed a cancellation notice to Maclaren at its address in Connecticut. Applying New York law. the court granted Maclaren summary judgment and—contrary to what would have resulted had English law applied—charged ACE with the premium’s receipt under N.Y. Insurance Law §2121. Program was ACE’s agent for the limited purpose of receiving on ACE’s behalf the payment of any premium that was due on the policy issued at Program’s request. The moment Program delivered the 2006 policy to Sahni, Sahni was a sub-agent of ACE and could receive the premium on ACE’s behalf. When Program delivered the policy to Sahni, he was then simultaneously a depositee and agent for the insurer and a fiduciary for the insured. Maclaren’s payment was intended for the policy ultimately delivered to Sahni by Program.