Search
 

'Special relationships' revisited

Indiana court considers when insurance agents and brokers have an additional duty of care to counsel clients.

By Louie Castoria | Updated on October 21, 2015
(Photo/Shutterstock)

Some agents and brokers have been viewed as order takers rather than insurance professionals. When does an order taker morph into a trusted advisor? As so often happens in the evolution of legal precedents, a phrase such as “special relationship” starts as a narrow exception to the general rule, and over time begins to swallow the rule.

This year, the Indiana Supreme Court took its turn at crafting a litmus test for a special relationship. In Indiana Restorative Dentistry v. Laven Insurance, the court dealt with a truly extended period of time. IRD, a dental practice, had opened in 1978, and worked with the same agent for the following 29 years. In 2009, a fire completely destroyed the dental office. The coverage for office contents had a limit of $200,000, but the loss of contents was valued at $700,000, thus a $500,000 underinsured loss.

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.

Louie Castoria

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.