Understanding Standard of Care
The insurance industry is built on the rock solid foundation of good faith dealing and the inherent promise to pay contained in every insurance contract. As a result of this concept a standard of care applicable to insurance producers and writers of insurance has come to be generally accepted. All insurance professionals are expected to use reasonable care and diligence when procuring insurance coverage on behalf of their clients. Insurance producers are also expected to possess a reasonable knowledge of the insurance contracts they are selling including terms and conditions of the contract and the availability of insurance coverage.
Included in this concept is the paramount duty to follow the instructions of the client, and the duty to procure insurance as agreed to by the client and the producer. It is important to note that giving timely notice to the client of the unavailability of coverage is not generally satisfactory in discharging this obligation. Equally important is the issue of reasonable care and diligence on the part of the insurance producer.
In certain situations the insurance producer's duty to his or her client is heightened by what is known as a "special relationship". A broad spectrum description of when a special relationship exists is when the insurance producer purports to the insurance client to be an insurance consultant, an insurance expert and/or enjoys a long term relationship with the client. Whether or not this relationship exists is determined on a case-by-case basis.
To learn more about the standard of care expected of insurance professionals or to speak with Richard Mintzer Associates LLC about serving as an expert witness for your firm, please fill out a contact form or call 877-461-1656.
Richard Mintzer Associates LLC
5551 Jewel Creek Court
Boulder, CO 80301
Telephone: 877-461-1656
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Richard Mintzer Associates LLC is located in the Denver Metro Area and serves clients nationwide.
