Insurance
May 2, 2013
Insurance brokers' duties to third parties continue to shrink
A new appellate decision clarifies the duties owed by insurance brokers to third-party claimants. By Robert J. McKennon and Victor T. Xu
In California, insurance brokers owe extensive duties to their clients and they can be sued if they negligently breach those duties. However, the question arises: Do insurance brokers owe a duty of reasonable care to those persons or entities who are not their clients? Over two decades ago, in Nowlon v. Koram Insurance Center, Inc., 1 Cal. App. 4th 1437 (1991), the state Court of Appeals answered this question ...
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