The Fiduciary Duty Of Insurance Brokers In NY

Law360, New York (March 2, 2011, 3:17 PM EST) -- On Feb. 17, the New York Court of Appeals issued a long awaited decision in People ex rel. Cuomo v. Wells Fargo Insurance Services Inc., a case that was closely followed in the insurance brokerage industry. The New York attorney general’s lawsuit arose from allegations that an insurance broker breached its common law fiduciary obligations to its clients by failing to disclose the contingent commission arrangements it had negotiated with insurance carriers.

In a unanimous opinion, the court disagreed, holding that “an insurance broker does not...
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