Insurance Carriers May Be Held Accountable For Their Agents’ Wrongful Acts

Insurance companies perform a significant amount of business through various agents. Agents and brokers solicit policies, collect premiums, issue policies, and report on, investigate and manage claims. An agent's negligence in these activities may adversely impact a policyholder's ability to recover in the event of a loss. A recent decision by the Washington Supreme Court reaffirms that when an insurer's agent commits wrongdoing, the insurer may also be held liable. Chicago Title Ins. Co. v. Washington State Office of Insurance Commissioner, 309 P.3d 372 (Wash. 2013). Accordingly, if an insurer's agent negatively affects an insured's ability to obtain indemnification for a loss, the insured may look to both the agent and the insurance company to be made whole.