What is the state of the law on representation in a personal injury case?

Leishman v. Commercial Union, supra, is a close parallel to this case because the insurer’s representation related to the extension of insurance to a person other than the named insured. The insured’s daughter accidentally started a fire at her boyfriend’s apartment. Her father reported the incident to his residential insurer, and was advised that the insurer would “take care of everything”. Over the course of a year, the insurer’s adjuster attempted to negotiate a settlement with the apartment owner. Negotiations broke down, and a Statement of Claim was filed. The insurer then advised the father that it was not prepared to extend coverage to his daughter. The daughter brought action against the insurer, claiming that she was insured under her father’s policy.