AMB PROPERTY, LP ET AL. v. PENN AMERICA INSURANCE COMPANY, ET AL
A-1248-09T2
An insured who funds its liability insurance policy through a premium financing agreement, which authorizes the lender to act as the insured's attorney-in-fact, is bound by the lender's subsequent action in effectuating cancellation of the policy for the insured's non-payment of premium, despite the fact that the power of attorney issued pursuant to the Insurance Premium Financing Company Act, N.J.S.A. 17:16D-1 to -16, did not conform to the technical requirements of the Power of Attorney statute, N.J.S.A. 46:2B-8.9, in that it was not signed and acknowledged by the insured.
We also held that, even assuming the power of attorney could only have been created if validly acknowledged, the insurer nevertheless had the right to rely on it in canceling the policy because of the lender's apparent authority to act on behalf of the insured. 02-14-11
