Walker

When does a cause of action accrue against an insurance broker who negligently secures automobile liability insurance in an amount less than that ordered by the car owner f That is the sole question presented by this appeal.

On March 17, 1952, one Merrill ordered an insurance policy covering operation of his logging truck with limits up to $50,000 for bodily injury to one person. Defendant Fulmore, Merrill’s broker, accepted the order but secured a policy with limits of only $15,000. On July 9, 1952, Merrill’s truck collided with an automobile, causing injur)'- to Elaine Walker. Shortly thereafter, an action was filed by Mrs. Walker against Merrill seeking damages of more than $100,000 for such injuries. This action was tried before a jury, which, on December 16,1955, returned a verdict for $100,000. The insurer, Pacific Indemnity Company, paid $15,000 plus costs and interest, on account of the ensuing judgment.

Merrill assigned his claim against the broker, Fulmore, to Mrs. Walker who, on December 14, 1956, brought this action alleging that Fulmore “negligently and carelessly” procured coverage of $15,000 rather than $50,000. The insurer was joined on the theory that Fulmore,…