Facts

A customer that supported his family on a $130,000 salary, accepted a new job at $200,000 and inquired about life insurance from claimant Jeffrey Cashman. Claimant recommended a policy of $2 million and the customer agreed. Claimant made a clerical error in checking a box for a temporary policy of which the customer already had coverage of $1.7 million. Life insurance typically takes about 6 to 8 weeks to process and the customer died within that window.

The customer's wife brought a claim for the $2 million temporary policy. The parties reached a settlement at mediation. As a result, the situation was listed as a customer complaint on the claimant's Central Registration Depository records. Claimant then sought expungement of that record.

CLAIMANT'S CONTENTIONS: Claimant contended that expungement is warranted because the allegation that he placed insurance without temporary insurance was clearly erroneous because temporary insurance was never discussed, was not needed, nor was any premium paid.

RESPONDENT'S CONTENTIONS: Respondent contended that the clerical error constituted a binding contract and claimant's subsequent refusal to pay the claim warranted the customer complaint.

Result

The arbitrator found expungement was warranted because the claim that temporary insurance was owed was clearly erroneous.

Other Information

ARBITRATOR: David William Hickman.