Why hire an independent risk consultant?
- Bragan Jackson
- Mar 25, 2023
- 1 min read
Reason #3
How do I know how much (or of what kind of) coverage do I need?
After re-locating from New York to Connecticut, a GEICO customer sought advice from their agent (who was licensed in both states) on their auto policies. Specifically, they inquired on uninsured/underinsured liability and excess coverages.
After discussion, the GEICO representative assured their customer that they had properly advised the customer on type and adequacy of coverage. Thus, in reliance on that discussion with their agent, they purchased the recommended coverages.
Following an accident with an underinsured motorist, the insured exhausted their insurance coverage and found that the total limits purchased were inadequate based on the insured's personal situation. In a suit, Connecticut courts ruled that while the insurer and their representative owed a duty of care to their insured, the commercial nature of their relationship did not rise to the level of a fiduciary relationship (or at the very least, though Connecticut law might say there's a fiduciary relationship between an insurer and their client, they haven't gone so far as to define the exact nature of what that duty entails).
Some questions you might want to ask yourself:
How many other states have similar laws or legal opinions?
Do you want to be involved in a case to find out?
Who should I be asking about what the right coverage is for my personal situation, if my agent doesn't have the highest duty of care to properly advise me?
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