A Wholesaler's Duty of Care to Insured: Am I Liable?PDF California Insurance Wholesalers Association (CIWA) "Industry Days"
Mark B. Robinson and David F. Hauge spoke on a panel at the California Insurance Wholesalers Association “Industry Days” conference on January 13, 2015 at the Hilton Torrey Pines in La Jolla, CA.
Wholesale insurance brokers act as kind of middlemen in the insurance marketing process. They negotiate insurance company policies with or on behalf of retail brokers who are the ones that deal directly with the insureds. The panel, titled “A Wholesaler’s Duty of Care to the Insured: Am I Liable?” addressed the question of what liability, if any, do wholesalers have to an insured with whom they have no direct contact or contractual relationship. The presentation focused on relevant law and practical tips to consider when evaluating the duty of care for a wholesaler to the insured -- i.e., under what circumstance could a wholesaler be liable to the insured, given that generally, the wholesaler deals only with the retail broker, not the insured? Additional topics covered included the ramifications of the Hunt decision on the potential liability of wholesalers to damages incurred by third parties including but not limited to the insured; the Hull & Co. vs Superior Court case; and a tangential focus on other areas of potential liability for wholesalers.