Agency Back in Litigation Brought by Alabama Boat Dealer Over Unearned Premiums

An Alabama Supreme Court decision keeps an insurance dispute alive involving an Orange Beach boat dealership and a local agency accused of failing to fully return “unearned premiums” after coverage was canceled in 2023. McCarron Insurance Group was dismissed from Gulf Shores Power Sports Inc.’s lawsuit after it paid $15,114 to court through an interpleader, but the state high court ruled that the lower court’s dismissal was improper. The dealership claims McCarron should have refunded at least $75,300, arguing that premium payments and commissions were not properly applied to Gulf Shores Power Sports’ Inland Marine Insurance package. In an Oct. 23 opinion, the court ordered the case to continue, finding interpleader circumstances were not met because the dealer made independent liability claims.