Without question, there are times when the conduct of an agent or broker falls below the commonly recognized and practice standard of the industry.
Life is too complex . . .
It is not the purpose here to discuss what the plan of action should include or how to implement such a plan. What needs to be discussed here are two of the problems moving to the forefront of the many problems confronting agents and brokers, one of which can be controlled to some degree by the very insurance producers who might someday be sued. The new morality It is becoming increasingly common to find situations where once coverage is denied by an insurer, the insurance buying public comes to the conclusion that the cost of financial loss should come from the pocket of the agent or from the deeper pocket of the agent's errors and omissions insurer. In one respect this statement is true, if an error or omission causes a client to sustain an uninsured loss where none would have occurred had the proper degree of care been exercised. However, there was a time when this was reserved for legitimate, clear-cut errors and omissions, such as where an agent or broker makes a misrepresentation on an application signed by that agent or broker on behalf of the applicant.