Broker's Liability
Ruling in Fine’s Flowers Ltd. et al v General Accident Assurance Co of Canada et al
What is the broker's duty to provide a reasonable amount of expertise and care when bargaining for a policy that the insured requires?
To notify your broker of a material change
What is duty to disclose
This is the formal request made by a policyholder to their insurance company for payment of a loss.
What is a claim
The insured must disclose all relevant and material information whether or not the insured has asked, while the insurer must disclose all information relevant to the deal the insured is entering.
What is the principle of utmost good faith in an insurance context?
If the insured’s broker has breached their duty the insured must...
What is prove that the policy requested would have covered the loss and prove that if they knew it was not covered, would have actually obtained the coverage?
Consequences of non-disclosure and misrepresentation
What is no coverage, premium returned?
This practice involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize the impact of those risks.
What is risk management
This occurs when the insured makes a false statement about a material fact, and that false statement induces the insurer to enter into the contract or to continue coverage.
What is material misrepresentation?
Instances where a broker might be held liable
What is if a broker failed to sufficiently explain the importance of disclosure or misled the insured?
To Read/understand your policy and its exclusions
What is duty to be informed
Individuals who investigate losses and/or negotiate the settlement claims on behalf, usually of insurers
What is an adjuster
The party that is "more innocent" has the...
What is moral high ground?