Search
 

‘What Can We Do About Ben?’ Examining the Duty to Advise

When faced with claims against agents and brokers for failing to properly advise their clients, courts have generally found that agents and brokers are not risk managers and are not responsible for advising their clients to purchase specific types or amounts of coverageabsent special circumstances.

By Peter J. Biging | Updated on June 25, 2012
When faced with claims against agents and brokers for failing to properly advise their clients, courts have generally found that agents and brokers are not “risk managers” and are not responsible for advising their clients to purchase specific types or amounts of coverage—absent “special circumstances.”

But when such “special circumstances” can be found to exist is far from clearly defined—and can seemingly sneak up on you at a moment’s notice. A cautionary example can be found in the 2010 case of Langwith v. American National General Ins. Co.

Dennis and Ben Langwith, father and son, sued American National General Insurance Co. and American National Property and Casualty Co. (collectively, “American National”), as well as their agent, Janet Fitzgerald, a self-employed captive agent for American National, following a coverage dispute in connection with a car accident.

Dennis and his wife Susan had purchased most of their insurance through Fitzgerald. Among the coverage they had was an Auto policy with limits of $250,000 and an Umbrella policy with a $3,000,000 limit. These policies also covered the Langwiths’ two children, including Ben.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.