Insurance agents are important. While some courts suggest that policyholders need to understand their policies, even the insurance industry mentioned in yesterday's post, The insurance industry teaches ethics but follows what it teaches admits policyholders do not understand their insurance policies. . Instead, the insurance industry acknowledges that when policyholders read their insurance, they “rarely understand what they are reading. Most people buy their coverage based on trust. “
Who do policyholders trust? Their insurance agent.
The entire insurance industry sells a product that is marketed as a "trust". It is no wonder that slogans such as a "Trusted Choice" agency are used to entice people to literally trust the advice these licensed and trained individuals give to a public that rarely thinks about insurance. Insurance agents know from their own training that policyholders do not have time to study the ever-increasing nuances of insurance risk and the protection available on the market. That's what the agents promise to do ̵
However, when an insurance agent is accused of leaving an policyholder underinsured, most insurance agents will then claim that they are no different than the policyholder of a McDonald & # 39 ;s. They claim that the agent never had a reliable relationship with the policyholder. Leaders in the insurance agent industry speak of "a favorable case" when it limits the legal exposure of their industries. Many actively support laws that disprove the industry's promise of trust when they are in a position where they have left a policyholder with a coverage gap or underinsured without warning.
I think policyholders should hire dedicated and passionate insurance agents. Policyholders should avoid buying insurance only and should seek insurance agents who take the time to meet and discuss the best possible insurance plans for the policyholder.
Chapter Ten in My Book, PayUP! has the title Can you trust your insurance agent? The chapter contains criteria for choosing a really good insurance agent. And if you happen to be a good insurance agent, I suggest you quote my book and your details because you are a very important person who makes the insurance product work.
So, what is the law on the obligations of the insurance agent in Nevada? An insurance lawyer, Riley A. Clayton, wrote an excellent study on the subject, Agents E&O Standard of Care Project – Nevada Survey :
In Nevada, an agent or broker has an obligation to “use reasonable care to place the insurance and seasonally to notify the customer if he can not do so. & # 39; Keddie v. Beneficial Ins., Inc. 94 Nev. 418, 420, (1978) … In other words, an insurance agent or broker does not owe the insured any additional obligations other than obtaining the requested insurance … Even if the Nevada Supreme Court has not issued a published opinion on this matter. , the Supreme Court of Nevada has stated in an unpublished opinion that & # 39; [i] Insurance companies and brokers have no affirmative obligation to advise their insured to obtain special or other type of coverage. & # 39; Flaherty v Kelly 59582, 2013 WL 7155078 (Nev. 2013) (unpublished). In other words, Nevada insurance agents can be loosely described as "order takers," and we believe that if the Nevada Supreme Court were to issue a formal opinion on this issue, it would end just as much.
Again, although not decided by the Supreme Court of Nevada, the Court of Nevada
has ruled that insurance brokers may take additional information in special circumstances. Flaherty 2013 WL 7155078 (with reference to Gary Knapp, Annotation, The insurer's or insurer's liability for failure to inform insured persons of coverage needs 88 ALR4: e 249, 256–263. In other contexts, however, the Nevada Supreme Court has ruled that if a person assumes an obligation that he would not otherwise have been guilty of, that person must perform the service performed with reasonable care, or otherwise be held liable for any violations … Thus this general rule may apply to insurance agents who voluntarily take on / undertake tasks that they are not otherwise obliged to in the insurance procurement process.
He noted a number of proposals for agents to avoid errors and omissions, which include: and policy changes with the customer
Policyholders should choose the best insurance agents they can find. Insurance is an important product and many overlook their insurance policies until a loss occurs. When a loss occurs, many people find out how bad an agent they chose because the agent sold "cheap insurance." life depends on the quality of your thoughts: therefore pay attention and make sure that you do not entertain any performances that are unsuitable for virtue and reasonable nature.