Insurer Escapes Suit for Sending Checks to Adjuster, Not Insured

Thirteen Investment Company lost its bid to hold Foremost Insurance Co. accountable for sending checks that its authorized public adjuster cashed.

The ability to sue an insurer for a public adjuster’s wrongs would be “odd,” the US Court of Appeals for the Seventh Circuit affirmed on Tuesday.

After a fire damaged Thirteen’s building, the company hired Paramount Restoration Group Inc. to handle the negotiation and settlement of insurance claims as well as perform general repairs. Thirteen also directed the insurance company to include Paramount on payments for the claim. Foremost delivered two checks to Paramount, which cashed them and kept ...