Duties of Insurance Agencies to each of their customers


Courts have held that the insurance agent's responsibility is to keep their insureds informed of not only any changes in the law, but also pending or future disasters that could occur in the line of site. For example, property damage coverage for an auto policy provides the option in many cases for $25,000 but it may be irresponsible for the agent to not inform the customer that multiple car accidents can cause much more in losses than $25,000 which would cause a significant cost to the customer if these individuals didn't enough or any insurance. Therefore the option to increase the property damage coverage to $100,000 would be sufficient and the responsibility of the agent to provide adequate and safe coverage.

With the case of, Rainey-Mapes v. Queen Charters, Inc., The jury found that the actual agents were in agreeance to procure and build a policy that was free of some types of exclusions that were actually negligent. If an agent is to have been found reasonably negligent in attempting to procure a policy, this doesn't relieve the agent or broker of their liability where he as failed to notify the insured of his inability to get insurance coverage that may be adequate and sufficient for the client.

[9] The basis for imposing liability in this situation is that the agent induced the insured to rely upon his/her promise to procure insurance. As a result the plaintiff reasonably assumed he was insured, when he was not, against the cause which caused his loss.[10] An agent must also keep clients informed as to progress of application, particularly where client could have avoided risk until coverage was secured.[11] There is also a duty to inform the client if an agent is unable to place the requested insurance.[12] Lastly, in order to establish causation of damages, a plaintiff must establish the availability of an insurance policy that would have provided the requested coverage.[13] If no policy would have provided the requested coverage, then a failure to procure insurance cannot be proven.[14] See article here

Burkholz Insurance Agency

202 Fremont St, #100

Las Vegas, NV