This continues along the line of my thread yesterday.
This link was sent to me by a friend.
: Agent Negligence : Property Insurance Coverage Law Blog
Read a few more articles and case law shows that "duty" may different from State to State. North Carolina insurance agents are considered order takers but there is still..................
"North Carolina courts have found that insurance brokers have an implied duty to give further advise to their clients where: (1) the agent received consideration beyond mere payment of the premium; (2) the insured made a clear request for advice; or (3) there is a course of dealings over an extended period of time which would put an objectively reasonable insurance agent on notice that his advice [was] being sought and relied on.”2
Agent Held Responsible for Underinsurance
" In Early v Smith-Kandal Insurance Agency, a historic hotel was destroyed by fire in March of 2007. The existing Chubb insurance policy of $3.1M didn’t cover the damages and the cost of rebuild. In the insured’s pursuit of a lawsuit for the underinsurance, the insured was able to show that before the last renewal of insurance that Chubb sent out a representative to inspect the property. That inspection resulted in recommendations by the insurer for additional coverage because the insured was heavily underinsured.
In this instance, the agent flat out failed to convey the inspection findings and the insurer’s recommendations to the insured hotel. Instead the agent, without notifying the insured, notified the insurer not to increase the policy limits and even changed the policy from that of replacement cost value policy to an actual cash value policy. The agent argued that he was unaware of that a replacement cost value policy was available to the insured and that when he learned of its availability, he issued a change of the policy to revert the policy back to what the agent thought the policy should be. Unfortunately, the agent’s change of policy was to an even worse policy for the insured.
it is highly advisable that every year an insured goes over their policy, their limits and their coverage with their broker or agent. At least the opportunity to ask questions to make sure your important assets such as your home, personal property or business and to note these dialogues in writing can afford some protection to the insured about what the possibilities of coverage are so they know what to expect in the unfortunate event of a loss. "
This comment made me smile
The Day Insurance Claims and Claims Handling Practices Became Interesting : Property Insurance Coverage Law Blog
"I suggest that insurance isn’t a boring subject at all. When you peel back the layers, it is based on all the elements of great theatre- deceit, destruction, conflict, good guys, bad guys, winners and losers."
This link was sent to me by a friend.
: Agent Negligence : Property Insurance Coverage Law Blog
Read a few more articles and case law shows that "duty" may different from State to State. North Carolina insurance agents are considered order takers but there is still..................
"North Carolina courts have found that insurance brokers have an implied duty to give further advise to their clients where: (1) the agent received consideration beyond mere payment of the premium; (2) the insured made a clear request for advice; or (3) there is a course of dealings over an extended period of time which would put an objectively reasonable insurance agent on notice that his advice [was] being sought and relied on.”2
Agent Held Responsible for Underinsurance
" In Early v Smith-Kandal Insurance Agency, a historic hotel was destroyed by fire in March of 2007. The existing Chubb insurance policy of $3.1M didn’t cover the damages and the cost of rebuild. In the insured’s pursuit of a lawsuit for the underinsurance, the insured was able to show that before the last renewal of insurance that Chubb sent out a representative to inspect the property. That inspection resulted in recommendations by the insurer for additional coverage because the insured was heavily underinsured.
In this instance, the agent flat out failed to convey the inspection findings and the insurer’s recommendations to the insured hotel. Instead the agent, without notifying the insured, notified the insurer not to increase the policy limits and even changed the policy from that of replacement cost value policy to an actual cash value policy. The agent argued that he was unaware of that a replacement cost value policy was available to the insured and that when he learned of its availability, he issued a change of the policy to revert the policy back to what the agent thought the policy should be. Unfortunately, the agent’s change of policy was to an even worse policy for the insured.
it is highly advisable that every year an insured goes over their policy, their limits and their coverage with their broker or agent. At least the opportunity to ask questions to make sure your important assets such as your home, personal property or business and to note these dialogues in writing can afford some protection to the insured about what the possibilities of coverage are so they know what to expect in the unfortunate event of a loss. "
This comment made me smile
The Day Insurance Claims and Claims Handling Practices Became Interesting : Property Insurance Coverage Law Blog
"I suggest that insurance isn’t a boring subject at all. When you peel back the layers, it is based on all the elements of great theatre- deceit, destruction, conflict, good guys, bad guys, winners and losers."
