Litigation in Gulf Coast states stemming from Hurricane Katrina has heightened agents' concern about their duty of care in recommending appropriate coverage and their potential liability under errors & omissions policies.
The actions of Nationwide Agent Jay Fletcher came under scrutiny in the case Leonard v. Nationwide because the original complaint alleged that Mr. Fletcher discouraged the plaintiffs, Paul and Julie Leonard, from buying flood insurance. (For more details of the case, see accompanying fact box, "What the Judge Said," and National Underwriter, Aug. 21, 2006, page 6.)
Mr. Fletcher himself was dismissed as a defendant when the case moved to federal court in Mississippi, but how he handled his dealings with Mr. Leonard is important for a number of reasons, some lawyers and E&O brokers say.
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