Opinion
May 18, 1993
Appeal from the Supreme Court, New York County (Beatrice Shainswit, J.).
We agree with the IAS Court that Insurance Law § 2121 (a), "designed to relieve the insured from all risks stemming from a broker's possible dishonesty or insolvency" (Bohlinger v Zanger, 306 N.Y. 228, 237 [Fuld, J., dissenting]), does not afford the same protection to a broker, such as appellant, who, pursuant to an arrangement with a cobroker, forwards a premium payment to the cobroker who then fails to remit the premium to the insurer. And, although appellant's documentary evidence does show that it paid the premium to codefendant-cobroker, nevertheless, appellant can be held liable for codefendant's theft of premium if, as plaintiff claims, appellant and codefendants had entered into a joint venture to procure the policy in question. The existence of such a joint venture is, as the IAS Court held, an issue of fact more appropriately to be considered after joinder of issue.
Concur — Murphy, P.J., Sullivan, Rosenberger, Ross and Asch, JJ.