Philosopher Jim Morrison of The Doors observed, "People are strange when you're a stranger." Indeed, strange things can happen to an insurance agent or broker when a complete stranger makes a claim for damages because his or her actual customer did not have needed insurance coverage.

In a column last year we examined the notion of a "special relationship" between an insurance professional and a customer. It's a term used by some courts as a litmus test to decide whether the broker owes a duty to recommend needed insurance coverage or higher limits to the customer. (Read: "Client relationships: the good, the bad, and the worse")

Special relationships can arise when the agent is paid to consult with the customer about needed coverage or limits (other than through commissions), the customer asks for advice about a question of coverage and relies on the broker's response, or there is a long-term course of dealing that would lead reasonable insurance brokers to believe that their advice is being relied on.