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Perspective

Nov. 13, 2014

Courts are expanding theories of agency liability

Courts are expanding theories of agent liability. These theories extend to a broader assortment of agents - even lawyers. By William M. Shernoff and Samuel Bruchey


By William M. Shernoff and Samuel Bruchey


Insurance agent liability most often arises when an agent or broker fails to obtain the insurance coverage a consumer specifically requests. The tortious conduct occurs when the policy is sold. Liability arises because the agent owes an independent duty to "exercise good faith and reasonable skill and diligence." 2 Bernard Witkin, Summary of California Law Insurance Section 20, at 52 (10th ed. 2005).


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