The first four minutes of this podcast from A.M. Best describe a recent California court decision on the liability of an insurance broker for a misstatement on an application. If you are a New York producer, you're acting as a broker any time you submit an application to an MGA; a wholesale broker; the New York Automobile Insurance Plan; the New York State Insurance Fund; and the New York Property Insurance Underwriting Association. In other words, almost any New York producer reading the blog post acts as a broker at least on occasion. Therefore, you should listen to this. Even though this is not a New York court decision, the lessons from it apply everywhere.
More episodes the Best Day Audio Podcast are available on the A.M. Best Web site.