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An appellate court in California, reversing a trial court’s decision, has ruled that the beneficiaries of a lapsed life insurance policy could continue their negligence action against an insurance agent in which they alleged that he had elected to respond substantively to the insured’s policy inquiry before her death and, by his voluntary actions, had created a special duty to or a special relationship with the insured to use reasonable care giving advice to her and for the benefit of the beneficiaries.

The Case

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