Novel ways of delivering insurance to the public are sometimes termed "disruptors," though "game changers" might be more apt. What happens when something goes wrong? It's a premise all insurance is based upon, but when the consumer is in the pilot's seat, who takes the blame for the crash?

|

Duty? What duty?

Each new insurance delivery method puts its own twist on the eternal question facing insurance brokers: When do I cross the line from being an order-taker, meeting the customers' stated needs, and become an advisor, bearing a responsibility to recommend coverages that the customer needs, but hasn't requested?

In traditional brokerage settings, courts generally imply a duty to advise if the broker has worked with the customer for several years and the customer has always accepted the broker's recommendations, sometimes termed a "special relationship."

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
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.

Agency Management
Commercial Lines
Commercial Lines
Corporate Risk
Coverage & Policy Issues
Personal Lines
Public Sector Risk
Recruitment