An insurance broker has a duty to act in good faith and inform
third parties who are not clients, but who suffer damages as a
result of inaccurate information provided by the broker about an
insurance product. That's what the Quebec Court of Appeal
confirmed in a recent decision that recognizes duties that go
beyond the ones brokers owe strictly to their clients.
The facts: Mr. Lefebvre wanted to buy Mr. Robinson's house
but the parties could not agree on the sale price given the
significant difference ($200,000) between the offer and
counter-offer. Looking for a solution, Mr. Lefebvre consulted an
insurance broker who recommended a prepaid insurance policy on Mr.
Robinson's life made payable to the latter's estate. The
broker then made an offer to Mr. Robinson on behalf of Mr. Lefebvre
which would see most of the sale price paid out on the transaction
date; the balance would be paid within five years and Mr. Lefebvre
would take out an universal life insurance policy
