In the first part of this article, we considered some of the promises independent agents and brokers make, either implicitly by claiming "independence" or explicitly in online credos.
Plaintiffs' counsel in agent and broker E&O cases ask pointed questions about claims of independence. Was a policy placed with the insurer in question because it offered a higher commission if the agent or broker generated a certain volume of business? What efforts did the agent or broker make to tailor standard policy forms to meet the insured's specific needs? When they ask questions like these, they're doing their due diligence. We need your help to do ours.
Related: Suit against insurance broker over Superstorm Sandy losses can continue says N.Y. court
|Don't play with fireworks
Agents and brokers can avoid E&O claims by following the standards they've held out to the public, plus those imposed by applicable insurance laws and regulations, and by documenting in their files the steps they took to meet those standards.
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